Liberty Latin America Reports Q2 and H1 2020 Results

Liberty Latin America Ltd. (“Liberty Latin America” or “LLA”) (NASDAQ: LILA and LILAK, OTC Link: LILAB) today announced its financial and operating results for the three months (“Q2”) and six months (“YTD” or “H1 2020”) ended June 30, 2020.

CEO Balan Nair commented, “As anticipated, following a strong start to the year, the second quarter brought with it a number of COVID-19 related challenges for many of our operations, resulting in declining year-over-year top-line performance. The good news is that we planned extensively and were able to offset some of the impacts through early cost management actions. As we look to the rest of the year, our mobile and B2B businesses are expected to see further challenges, however we believe we are past the low point. We continue to be focused on generating positive free cash flow in 2020, and took a step towards that with our strong Q2 performance.”

“In terms of our reporting segments, Puerto Rico led with another tremendous quarter, reporting record RGU additions and we are looking forward to adding AT&T's assets in Puerto Rico and the US Virgin Islands to further enhance our customer proposition and prospects. VTR and Cabletica also added subscribers in the period, albeit seeing more of an impact from lockdown restrictions in Chile. C&W experienced the greatest headwinds with declining RGUs driven by Panama where we experienced the most restrictive lockdowns across all of our markets. From a product perspective, consumers continue to demand high-speed connectivity and our fixed-line services have been particularly resilient.”

“Last week, we announced the exciting news that we agreed to acquire Telefónica's Costa Rica business. We have had great success in Costa Rica with our cable operation Cabletica and are increasing our investment in the country through a complementary, fast-growing, and postpaid-weighted mobile business. The two businesses combined would create a leading full-service communications player with approximately $400 million of revenue1. This transaction comes at an attractive valuation, consistent with our disciplined approach towards M&A.”

“As part of the financing for our acquisition of Telefónica Costa Rica as well as looking to other potential opportunities across our strong pipeline, we announced a $350 million rights offering today, with all the members of our Board and my leadership team having expressed their intention to subscribe. We feel this is an appropriate step to ensure we have flexibility to participate in accretive M&A opportunities, while maintaining a prudent capital structure.”

“Overall there continues to be uncertainty due to COVID-19, however our operating and financial performance has been improving since a trough in April, and we anticipate further progress over the remainder of 2020. Looking further ahead, cash generation remains our focus. This should be bolstered by organic performance, as we drive growth and efficiency in the business, benefiting from targeted network and product investments, in addition to disciplined acquisition activity.”

Business Highlights

• C&W Q2 results impacted by COVID-19:
  • Monthly revenue performance building from April low
  • Q2 fixed RGU net losses driven by Panama restrictions, strong additions in Jamaica
  • New build / upgrade activity added over 50,000 homes, mainly in Panama and Jamaica

• VTR/Cabletica reported resilient commercial performance:
  • RGU growth driven by 19,000 broadband additions in Chile
  • Higher Q2 costs following capacity demand spike and FX impact on USD based costs
  • New build / upgrade activity impacted by COVID-19, over 10,000 homes added

• Liberty Puerto Rico delivered another strong quarter:
  • Record RGU additions of 34,000 in Q2 driven by best ever broadband performance
  • Reported revenue growth of 5%
  • New build / upgrade activity added over 5,000 homes

Financial Highlights

Subscriber Growth5

• Fixed customer additions: Organic additions of 21,000 in Q2 2020.
  • Liberty Puerto Rico reported a record quarter with 20,000 customer additions, approximately five times the prior-year period's additions.
  • Gains in VTR/Cabletica were offset by net losses in C&W, driven by Panama.

• Product additions: Organic fixed RGU additions of 19,000 in Q2 2020 were driven by broadband subscriber growth. Mobile organic losses totaled 310,000 in the quarter.

• C&W fixed RGUs declined by 26,000 during the quarter. This included gains of 26,000 in Jamaica, which were more than offset by losses of 45,000 in Panama, where rigorous lockdown measures, first implemented in March, continue to restrict commercial activity. Our losses in Panama include the removal of 76,000 RGUs who continue to receive services and, due to COVID-19, have not been disconnected in accordance with our normal policy for non-payment.
  • Broadband RGU additions of 2,000 were 13,000 lower year-over-year. In Jamaica, continued momentum drove record Q2 additions of 14,000, or three times the prior-year period. This performance was mostly offset by broadband RGU losses of 12,000 in Panama.
  • Video RGUs declined by 19,000, as a 3,000 RGU gain in Jamaica, where additions were 79% higher than the prior-year period, was more than offset by a reduction of 18,000 video subscribers in Panama, and net losses across our other markets.
  • Fixed-line telephony RGUs were 9,000 lower for C&W in the quarter. Jamaica, once again drove strong additions with a gain of 10,000 subscribers, eight times higher than the prior-year period, however, this was more than offset by losses of 15,000 telephony RGUs in Panama, and net losses across our other markets.
  • Mobile subscribers declined by 307,000 in Q2, driven by prepaid losses of 289,000. Panama and Jamaica mobile subscribers were 131,000 and 107,000 lower, respectively. In both cases, mobility restrictions impacted demand for mobile services and the ability of customers to top-up. In Jamaica, we also continued to see increased promotional activity from our competitor. Subscriber net adds improved in June, following April and May, which were our weakest months in the year.

• VTR/Cabletica added 12,000 fixed RGUs during Q2. VTR added 5,000 RGUs overall, with strong broadband additions of 19,000, in-line with the prior-year period and 30% higher than Q1 2020, offset by 11,000 fixed-line telephony and 3,000 video RGU losses. Video subscriber losses at VTR followed the suspension of the Chilean soccer league. Cabletica added 6,000 RGUs in total, driven by broadband and video.
  • In mobile, VTR lost 3,000 subscribers in Q2 due to the impact of lockdown restrictions in Chile, particularly with respect to store closures leading to reduced retail activity. At June 30, 2020, 96% of VTR's subscribers were on postpaid plans.

• Liberty Puerto Rico reported a record 34,000 fixed RGU additions in Q2 driven by 22,000 broadband additions as demand increased for access to our high-speed network.

Revenue Highlights

The following table presents (i) revenue of each of our reportable segments for the comparative periods and (ii) the percentage change from period-to-period on both a reported and rebased basis:

N.M. – Not Meaningful.

• Our reported revenue for the three and six months ended June 30, 2020 decreased by 14% and 8%, respectively.
  • Reported revenue decline in Q2 2020 was largely driven by (1) negative impacts from COVID-19, particularly in C&W, (2) a net negative foreign exchange (“FX”) impact of $47 million, primarily related to a 20% appreciation of the U.S. dollar in relation to the Chilean peso, and (3) a $14 million reduction, as compared to the prior-year period, from the disposal of C&W's Seychelles business. These declines were partially offset by organic growth in Liberty Puerto Rico.
  • Reported revenue decline in H1 2020 was primarily driven by (1) a net negative FX impact of $94 million, primarily related to a 20% appreciation of the U.S. dollar in relation to the Chilean peso, and (2) negative impacts from COVID-19, particularly in C&W. These declines were partially offset by organic growth in Liberty Puerto Rico.

Q2 2020 Revenue Growth – Segment Highlights

• C&W: Reported and rebased revenue declines of 15% and 12%, respectively. The higher reported decline was driven by inclusion of our now divested C&W Seychelles business in the prior-year period and adverse currency movements.
  • B2B revenue declined 15% on a reported basis and 12% on a rebased basis. The rebased decline was driven by (i) lower revenues from fixed and mobile services due to discounts and credits related to reduced or suspended service across our markets as a result of the COVID-19 lockdowns, (ii) lower revenues from managed services, primarily driven by certain non-recurring projects in Panama that have been put on hold due to the economic uncertainty of the impact of COVID-19, and (iii) a strategic decision to reduce low margin transit revenue. These declines were partly offset by year-over-year growth in our subsea operation. On a sequential basis, subsea revenue declined in part due to$10 million of revenue recognized during Q1 2020 associated with revenue recognized on a cash basis for services provided to a significant customer.
  • Fixed residential revenue was down 3% on a reported basis and relatively flat on a rebased basis. The rebased performance resulted from growth in subscription revenue, driven by organic RGU additions (organic RGUs were 5% higher year-over-year), offset by non-subscription revenue declines in interconnect and other categories.
  • Mobile reported and rebased revenue declines of 25% and 22%, respectively. Subscription revenue was impacted by reduced recharge activity and fewer subscribers during the lockdown periods, particularly in Panama, which is C&W's largest mobile market and also under the most restrictive conditions. Roaming revenue declined by $7 million year-over-year, also contributing to the rebased mobile performance, with the largest impact in the Bahamas.

• VTR/Cabletica: Q2 Reported and rebased revenue declines of 17% and 3%, respectively. The higher reported year-over-year decline was driven by a 20% appreciation of the U.S. dollar in relation to the Chilean peso. The rebased revenue decline was driven by COVID-19 related impacts in VTR, primarily the suspension of the Chilean soccer league which led to $5 million of discounts for customers who had subscribed to the premium channel airing the league's games. Cabletica grew revenue on both a reported and rebased basis driven by subscriber growth over the year.

• Liberty Puerto Rico: Reported and rebased revenue growth of 5% was driven by broadband subscriber additions, reflecting the strength of our networks and entertainment propositions.

Operating Income (Loss)

• Operating income (loss) was ($206 million) and $144 million for the three months ended June 30, 2020 and 2019, respectively, and ($98 million) and $257 million for the six months ended June 30, 2020 and 2019, respectively.
  • We reported operating losses during the three and six months ended June 30, 2020, compared with operating income for the corresponding periods during 2019, primarily due to (i) goodwill impairments recorded during the second quarter of 2020 in certain C&W markets and (ii) lower Adjusted OIBDA, as further discussed below.

Adjusted OIBDA Highlights

The following table presents (i) Adjusted OIBDA of each of our reportable segments and our corporate category for the comparative periods and (ii) the percentage change from period-to-period on both a reported and rebased basis:

• Our reported Adjusted OIBDA for the three and six months ended June 30, 2020 decreased by 14% and 8%, respectively.
  • Reported Adjusted OIBDA decline in Q2 2020 was primarily driven by (1) negative impacts from COVID-19, particularly in C&W and VTR, (2) a net negative FX impact of $18 million, mainly related to the Chilean peso, (3) an $8 million decrease due to the impact of U.S. dollar appreciation against the Chilean peso on VTR's non-functional U.S. dollar costs and (4) a $5 million reduction, as compared to the prior-year period, from the disposal of C&W's Seychelles business. This was partially offset by (1) organic growth in Puerto Rico and (2) lower bonus-related expenses in the current year related to certain amounts that will be settled with shares.
  • Reported Adjusted OIBDA decline in H1 2020 was primarily driven by (1) a net negative FX impact of $35 million, mainly related to the Chilean peso, (2) negative impacts from COVID-19, particularly in C&W, and (3) a $13 million decrease due to the impact of U.S. dollar appreciation against the Chilean peso on VTR's non-functional U.S. dollar costs. This was partially offset by (1) organic growth in Puerto Rico and (2) lower bonus-related expenses in the current year related to certain amounts that will be settled with shares.

Q2 2020 Adjusted OIBDA Growth – Segment Highlights

• C&W: Reported and rebased Adjusted OIBDA declines of 14% and 10%, respectively in Q2. Our rebased performance was driven by the aforementioned rebased revenue decline, partly offset by lower direct and operating costs.
  • Reduced direct costs were due to (i) lower handset sales, as many markets faced lockdown restrictions, (ii) reduced programming expenses driven by improved year-over-year contract rates for the Premier League and reduced games during the period and (iii) lower transit revenue.
  • Other operating costs and expenses were lower year-over-year, primarily due to (i) reduced personnel costs due in part to benefits from ongoing restructuring activities, (ii) a decrease in marketing and sales costs and (iii) lower professional services costs associated with third-party legal and advisory-related services.

• VTR/Cabletica: Reported and rebased Adjusted OIBDA declines of 23% and 10%, respectively. The higher reported year-over-year decline was driven by a 20% appreciation of the U.S. dollar in relation to the Chilean peso. Our Q2 rebased Adjusted OIBDA decline was driven by the aforementioned revenue impacts, certain costs primarily related to COVID-19 and currency movements related to contracts denominated in foreign currencies.
  • Direct costs reduced overall year-over-year due to lower programming costs, including a decrease related to the renegotiation of a programming contract for soccer matches cancelled due to COVID-19 and lower equipment sales due to reduced store activity. These declines were partly offset by the foreign currency impact of programming contracts denominated in U.S. dollars.
  • Other operating costs and expenses increased compared to the prior-year quarter, primarily due to higher network-related and call center costs, as we addressed a significant spike in bandwidth demand in Chile where usage levels increased by approximately 50%. Since the initial peak, we have worked diligently to increase capacity in our network and seen reduced call center volumes and improved network performance, which we expect to drive reduced associated costs through the remainder of 2020.
  • The segment's costs were impacted by an $8 million increase year-over-year due to the impact of U.S. dollar appreciation against the Chilean peso on VTR's non-functional U.S. dollar costs, primarily in programming, which drove an impact of $6 million. Sequentially, the impact of U.S. dollar appreciation against the Chilean peso increased our non-functional currency costs by $3 million.

• Liberty Puerto Rico: Reported and rebased Adjusted OIBDA growth of 2%, driven by the previously mentioned revenue growth, partly offset by additional programming costs and integration expenses ahead of the anticipated acquisition of AT&T's Puerto Rico and U.S. Virgin Islands assets.

Net Loss Attributable to Shareholders

• Net loss attributable to shareholders was $393 million and $116 million for the three months ended June 30, 2020 and 2019, respectively, and $574 million and $158 million for the six months ended June 30, 2020 and 2019, respectively.

Property and Equipment Additions and Capital Expenditures

The table below highlights the categories of the property and equipment additions for the indicated periods and reconciles those additions to the capital expenditures that are presented in the condensed consolidated statements of cash flows included in our Form 10-Q.

Segment Highlights

• C&W: Property and equipment additions of $82 million represented 16% of revenue in Q2 2020, an increase compared to 14% of revenue in the prior-year period, and 14% of revenue in H1 2020 compared to 12% in H1 2019. The higher year-over-year spend was driven by restoration activity following Hurricane Dorian in the Bahamas and our new build and upgrade programs. Reduced installation and equipment costs drove lower customer premise equipment costs, as compared to the prior-year period.
  • In H1 2020, new build and upgrade initiatives delivered approximately 95,000 new or upgraded homes, including over 50,000 in Q2.

• VTR/Cabletica: Property and equipment additions of $50 million represented 22% of revenue in Q2 2020, a decline compared to 23% of revenue in the prior-year period, and 20% of revenue in H1 2020 compared to 21% in H1 2019. The decrease was primarily driven by lower customer premise equipment costs and reduced new build material and labor costs as lockdown restrictions in Chile impacted our construction activity, year-over-year. This was partly offset by higher capacity spend to address bandwidth demand growth as lockdowns were implemented in Chile.
  • In H1 2020, new build and upgrade initiatives delivered over 40,000 new or upgraded homes in Chile and Costa Rica, including over 10,000 in Q2.

• Liberty Puerto Rico: Property and equipment additions of $20 million represented 18% of revenue in Q2 2020, a decline compared to 19% of revenue in the prior-year period, and 15% of revenue in H1 2020 compared to 19% in H1 2019.
  • In H1 2020, new build initiatives delivered over 10,000 new homes, including over 5,000 in Q2.

Leverage and Liquidity (at June 30, 2020)

• Total principal amount of debt and finance leases: $8,983 million, including (i) debt of $1,343 million borrowed by Liberty Puerto Rico to fund the AT&T Acquisition (with the corresponding cash held in escrow) and (ii) debt of $313 million and $63 million at C&W and Liberty Puerto Rico, respectively, under the respective borrowing group's revolving credit facilities, the proceeds of which are included in cash and cash equivalents in our condensed consolidated balance sheet as of June 30, 2020. Subsequent to June 30, 2020, we repaid $213 million and $63 million of borrowings under the revolving credit facilities at C&W and Liberty Puerto Rico, respectively.

• Leverage ratios: Consolidated gross and net leverage ratios are 6.4x and 4.2x, respectively, as calculated on a latest two quarters annualized ("L2QA") basis. Excluding the incremental debt to fund the AT&T Acquisition, our consolidated gross leverage ratio would decline to 5.5x.

• Average debt tenor6: 6.1 years, with approximately 94% not due until 2024 or beyond. Following the VTR refinancing transactions we concluded in July, the average debt tenor increased to 6.7 years.

• Borrowing costs: Blended, fully-swapped borrowing cost of our debt was approximately 6.2%. When excluding the discount on the convertible notes associated with the conversion option, the weighted average interest rate was 5.9%.

• Cash and borrowing availability: $3,124 million of cash (including $1,353 million of restricted cash held in escrow to fund the AT&T Acquisition) and $765 million of aggregate unused borrowing capacity7 under our revolving credit facilities.

Forward-Looking Statements and Disclaimer

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our strategies, priorities, financial performance and guidance; regarding the COVID-19 pandemic, our response to such pandemic and the anticipated impact of such crisis on our business and financial results; our customer value propositions; product innovation and investments; the AT&T Acquisition, including the anticipated consequences and benefits of the transaction; the acquisition of Telefónica's Costa Rica business; the rights offering, including who intends to subscribe; the strength of our balance sheet and tenor of our debt; and other information and statements that are not historical fact. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. These risks and uncertainties include events that are outside of our control, such as hurricanes and other natural disasters, political or social events, and pandemics, such as COVID-19, the uncertainties surrounding such events and efforts to contain any pandemic, the ability and cost to restore networks in the markets impacted by hurricanes or generally to respond to any such events; the continued use by subscribers and potential subscribers of our services and their willingness to upgrade to our more advanced offerings; our ability to meet challenges from competition, to manage rapid technological change or to maintain or increase rates to our subscribers or to pass through increased costs to our subscribers; the effects of changes in laws or regulation; general economic factors; our ability to obtain regulatory approval and satisfy conditions associated with acquisitions and dispositions, including the AT&T Acquisition and the acquisition of Telefónica's Costa Rica business; our ability to successfully acquire and integrate new businesses and realize anticipated efficiencies from acquired businesses; the availability of attractive programming for our video services and the costs associated with such programming; our ability to achieve forecasted financial and operating targets; the outcome of any pending or threatened litigation; the ability of our operating companies to access cash of their respective subsidiaries; the impact of our operating companies' future financial performance, or market conditions generally, on the availability, terms and deployment of capital; fluctuations in currency exchange and interest rates; the ability of suppliers and vendors (including our third-party wireless network provider under our MVNO arrangement) to timely deliver quality products, equipment, software, services and access; our ability to adequately forecast and plan future network requirements including the costs and benefits associated with network expansions; and other factors detailed from time to time in our filings with the Securities and Exchange Commission, including our most recently filed Form 10-K and Form 10-Q. These forward-looking statements speak only as of the date of this press release. We expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of any securities referred to in this press release in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The rights offering will be made only by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended. None of Liberty Latin America, its board of directors or any committee of its board of directors is making any recommendation to rightsholders as to whether to exercise or sell their Class C rights related to the rights offering. When available, rightsholders should carefully read the prospectus insofar as it relates to the rights offering before making any decisions with respect to their Class C rights.

About Liberty Latin America

Liberty Latin America is a leading communications company operating in over 20 countries across Latin America and the Caribbean under the consumer brands VTR, Flow, Liberty, Más Móvil, BTC, UTS and Cabletica. The communications and entertainment services that we offer to our residential and business customers in the region include digital video, broadband internet, telephony and mobile services. Our business products and services include enterprise-grade connectivity, data center, hosting and managed solutions, as well as information technology solutions with customers ranging from small and medium enterprises to international companies and governmental agencies. In addition, Liberty Latin America operates a subsea and terrestrial fiber optic cable network that connects over 40 markets in the region.

Liberty Latin America has three separate classes of common shares, which are traded on the NASDAQ Global Select Market under the symbols “LILA” (Class A) and “LILAK” (Class C), and on the OTC link under the symbol “LILAB” (Class B).

For more information, please visit www.lla.com.

Footnotes

1. Amount based upon a combination of (i) Cabletica revenue for the year ended December 31, 2019 in accordance with U.S. GAAP as set forth in note 19 to the consolidated financial statements included in our 2019 Form 10-K and (ii) revenue of Telefónica's Costa Rica operations for the same period in accordance with Telefónica's accounting policies and International Financial Reporting Standards.
2. Rebased growth rates are a non-GAAP measure. The indicated growth rates are rebased for the estimated impacts of (i) an acquisition, (ii) a disposal, (iii) FX, (iv) for the C&W and Liberty Puerto Rico segments, the impact of a small common control transaction between these segments, and (v) for the C&W segment and our corporate operations, the impact of the transfer of our captive insurance operation from our C&W segment to our corporate operations. See Non-GAAP Reconciliations below.
3. Adjusted OIBDA is a non-GAAP measure that was previously referred to as "operating cash flow" in our quarterly earnings releases. Effective June 30, 2020, we no longer use the term "operating cash flow" and this key performance metric is now referred to as Adjusted OIBDA. For the definition of Adjusted OIBDA and required reconciliations, see Non-GAAP Reconciliations below.
4. Adjusted Free Cash Flow is a non-GAAP measure. For the definition of Adjusted Free Cash Flow (“Adjusted FCF”) and required reconciliations, see Non-GAAP Reconciliations below.
5. See Glossary for the definition of RGUs and mobile subscribers. Organic figures exclude RGUs and mobile subscribers of acquired entities at the date of acquisition and other nonorganic adjustments, but include the impact of changes in RGUs and mobile subscribers from the date of acquisition. All subscriber/RGU additions or losses refer to net organic changes, unless otherwise noted.
6. For purposes of calculating our average tenor, total debt excludes vendor financing and finance lease obligations.
7. At June 30, 2020, we had undrawn commitments of $765 million. At June 30, 2020, the full amount of unused borrowing capacity under our subsidiaries' revolving credit facilities was available to be borrowed, both before and after completion of the June 30, 2020 compliance reporting requirements. Subsequent to June 30, 2020, we repaid $275 million of borrowings under the revolving credit facilities, following which we have undrawn commitments of $1,140 million. For information regarding limitations on our ability to access this liquidity, see the discussion under "Material Changes in Financial Condition" in our most recently filed Quarterly Report on Form 10-Q.

Summary of Debt, Finance Lease Obligations, Cash and Cash Equivalents & Restricted Cash

The following table details the U.S. dollar equivalent balances of the outstanding principal amounts of our debt and finance lease obligations, and cash, cash equivalents and restricted cash at June 30, 2020:

1. Represents the amount held by Liberty Latin America on a standalone basis plus the aggregate amount held by subsidiaries of Liberty Latin America that are outside our borrowing groups. Subsidiaries of Liberty Latin America that are outside our borrowing groups rely on funds provided by our borrowing groups to satisfy their liquidity needs.
2. Debt amount includes $1,343 million borrowed by Liberty Puerto Rico to fund the AT&T Acquisition. Cash amount includes $1,353 million of restricted cash held in escrow to fund a portion of the AT&T Acquisition.

ARPU per Customer Relationship

The following table provides ARPU per customer relationship for the indicated periods:

Mobile ARPU4

The following table provides ARPU per mobile subscriber for the indicated periods:

1. The FX-neutral change represents the percentage change on a year-over-year basis adjusted for FX impacts and is calculated by adjusting the current-year figures to reflect translation at the foreign currency rates used to translate the prior-year amounts.
2. In order to provide a more meaningful comparison of ARPU per customer relationship and ARPU per mobile subscriber, we have reflected any nonorganic adjustments in the customer and mobile subscriber figures used to calculate ARPU per customer relationship and ARPU per mobile subscriber for the three months ended June 30, 2019.
3. The amounts for the three months ended June 30, 2019 exclude the revenue, customers and mobile subscribers from our operations in the Seychelles. This allows for a more accurate comparison to Q2 2020, as these operations were sold during November 2019.
4. Mobile ARPU amounts are calculated excluding interconnect revenue.
5. The mobile ARPU amounts in Chilean pesos for the three months ended June 30, 2020 and 2019 are CLP 12,510 and CLP 13,331, respectively.

Additional Information | Cable & Wireless Borrowing Group

The following table reflects preliminary unaudited selected financial results for three and six months ended June 30, 2020 and 2019 in accordance with U.S. GAAP.

The following table details the borrowing currency and U.S. dollar equivalent of the nominal amount outstanding of C&W's debt, finance lease obligations and cash and cash equivalents:

• In March 2020, we borrowed $313 million under the C&W Revolving Credit Facility, which is included on our condensed consolidated balance sheet as of June 30, 2020. Subsequent to June 30, 2020, we repaid $213 million of the amount drawn under this facility.
• At June 30, 2020, our total and proportionate net debt were $3.8 billion and $3.7 billion, respectively, our Fully-swapped Borrowing Cost was 5.6%, and the average tenor of our debt obligations (excluding vendor financing) was approximately 6.8 years.
• Our portion of Adjusted OIBDA, after deducting the noncontrolling interests' share, (“Proportionate Adjusted OIBDA”) was $178 million in Q2 2020 and $195 million for Q2 2019.
• Based on Q2 results, our Proportionate Net Leverage Ratio was 4.5x, calculated in accordance with C&W's Credit Agreement. At June 30, 2020, we had maximum undrawn commitments of $433 million, including $121 million under our regional facilities. At June 30, 2020, the full amount of unused borrowing capacity under our credit facilities (including regional facilities) was available to be borrowed, both before and after completion of the June 30, 2020 compliance reporting requirements.

VTR Borrowing Group

The following table reflects preliminary unaudited selected financial results for three and six months ended June 30, 2020 and 2019 in accordance with U.S. GAAP.

The following table details the borrowing currency and Chilean peso equivalent of the nominal amount outstanding of VTR's debt, finance lease obligations and cash and cash equivalents:

1. Under the terms of the credit agreement, VTR is obligated to repay 50% of the outstanding aggregate principal amount of the Term Loan Facility B-1 on November 23, 2022, with the remaining principal amount due on May 23, 2023, which represents the ultimate maturity date of the facility.

2. Índice de Cámara Promedio rate.

3. Tasa Activa Bancaria rate.

4. Includes a $1 million credit facility that matures on May 23, 2023. In June 2020, the commitment under the revolving credit facility B was increased to $200 million and the term was extended to June 15, 2026.

• At June 30, 2020, our Fully-swapped Borrowing Cost was 6.6% and the average tenor of debt (excluding vendor financing) was approximately 3.4 years. After adjusting for the July 2020 VTR refinancing activity (as further described below), the average tenor of debt would be approximately 7 years.
• Based on our results for Q2 2020, and subject to the completion of the corresponding compliance reporting requirements, our Consolidated Net Leverage ratio was 3.9x, calculated in accordance with VTR's Credit Agreement.
• In June 2020, VTR repaid $92 million drawings under its revolving credit facilities, it had made earlier in the year, and increased the commitment under the VTR RCF – B facility to $200 million from $185 million and extended the term to 2026 from 2023.
• At June 30, 2020, we had maximum undrawn commitments of $200 million (CLP 164 billion) and CLP 45 billion. At June 30, 2020, the full amount of unused borrowing capacity under our credit facilities was available to be borrowed, both before and after completion of the June 30, 2020 compliance reporting requirements.
• In July 2020, we issued $600 million aggregate principal amount of 5.125% senior secured notes due January 15, 2028 and $550 million aggregate principal amount of 6.375% senior notes due July 15, 2028. The net proceeds, together with proceeds received during Q2 2020 from the unwinding of certain derivative instruments, were used to refinance the $1,260 million 6.875% Senior Notes due 2024 in full, including transaction-related fees and expenses.

Liberty Puerto Rico (LPR) Borrowing Group:

The following table details the nominal amount outstanding of Liberty Puerto Rico's debt, cash and cash equivalents, and restricted cash:

• In May 2020, LCPR Senior Secured Financing Designated Activity Company issued an additional $90 million aggregate principal amount, at 102.5% of par, under the existing 2027 LPR Senior Secured Notes indenture.
• In March 2020, we borrowed $63 million under the 2019 LPR Revolving Credit Facility, which is included in cash and cash equivalents on our condensed consolidated balance sheet as of June 30, 2020. Subsequent to June 30, 2020, we repaid in full the $63 million amount drawn under this facility.
• Based on our results for Q2 2020, and subject to the completion of the corresponding compliance reporting requirements, our Consolidated Net Leverage Ratio was 4.3x, calculated in accordance with LPR’s Group Credit Agreement.
• At June 30, 2020, we had maximum undrawn commitments of $63 million. At June 30, 2020, the full amount of unused borrowing capacity under our revolving credit facility was available to be borrowed, both before and after completion of the June 30, 2020 compliance reporting requirements.

Cabletica Borrowing Group:

The following table details the borrowing currency and Costa Rican colón equivalent of the nominal amount outstanding of Cabletica's debt and cash and cash equivalents:

•  As part of the VTR refinancing activity mentioned above, Liberty Latin America also announced its intention to contribute its 80% stake in Cabletica S.A. into the VTR Finance N.V. credit pool. The contribution is expected to be completed in Q1 2021.

Subscriber Tables