Categories Technology

AT&T to sell Puerto Rico operations to reduce debt

AT&T Inc. (NYSE: T) announced the sale of its wireless and wireline operations in Puerto Rico and the US Virgin Islands to Liberty Latin America for $1.95 billion in cash. The deal is subject to review by the FCC and the Department of Justice, and is expected to close within 6-9 months.

At close, approx. 1,300 AT&T employees will move to Liberty Latin America. AT&T will provide transition support functions to Liberty Latin America after the transaction closes in order to enable a smooth transition for customers.

AT&T to sell Puerto Rico operations to reduce debt
Photo Courtesy: AT&T / Facebook post

AT&T will retain its FirstNet network core and service capabilities and following the close of the merger, Liberty Latin America will support AT&T’s FirstNet expansion in Puerto Rico and the US Virgin Islands.

John Stephens, CFO said, “This transaction is a result of our ongoing strategic review of our balance sheet and assets to identify opportunities for monetization.”

Also read: General Motors: A look at deliveries over the past year

AT&T has been trying to reduce its massive debt load after the acquisition of Time Warner. The company has raised $10 billion year to date from asset sales and working capital initiatives. This is ahead of the target of $6 billion to $8 billion it had set for the year.

The company plans to buy back shares in the fourth quarter of 2019 while continuing to reduce debt. AT&T aims to reach a net debt-to-adjusted EBITDA ratio in the 2.5x range this year.

AT&T’s shares were up slightly in afternoon trade on Wednesday.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top