Liberty Latin America Ltd. will issue a special dividend of Series A Preference Shares with a 9% fixed rate, creating an aggregate liquidation preference of approximately $500 million. The dividend provides a high-yield, tradable security to common shareholders.
"As previously communicated, Liberty Latin America's Director Emeritus Dr. John C. Malone, Executive Chairman Mike Fries, and President and CEO Balan Nair, have each indicated their intention to be long-term holders of the Series A Preference Shares both directly and indirectly," the company said in a statement.
The company will distribute one share of the new preference stock for every ten common shares held, equivalent to a $2.50 liquidation preference per common share. The new shares will have an initial liquidation price of $25 each and are expected to trade on the Nasdaq Global Select Market under the symbol "LILAP."
The distribution is set for June 16, 2026, to shareholders of record as of 5:00 p.m. New York City time on June 1, 2026. The move allows the company to reward shareholders while preserving cash, with the distribution intended to be tax-free for U.S. and U.K. investors.
Holders of the Series A Preference Shares are entitled to receive quarterly cash dividends. The shares will be non-voting, except in limited circumstances as required by law. The distribution remains subject to conditions including registration of the shares with the Securities and Exchange Commission and listing approval from Nasdaq.
This special dividend provides existing shareholders with a high-yield, tradable security without diluting their common stock ownership on a share-for-share basis. Investors will watch for the ex-dividend date and the start of "when-issued" trading, which the company stated will be announced later.
This article is for informational purposes only and does not constitute investment advice.
