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AT&T selling Puerto Rico, USVI operations for $1.95B

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AT&T (NYSE:T) is selling its operations in Puerto Rico and the U.S. Virgin Islands, to Liberty Latin America (NASDAQ:LILA) for $1.95B in cash.

The deal will transfer network assets (including spectrum); real estate and leases; customers (including 1.1M wireless subs); contracts; and some 1,300 current AT&T employees.

AT&T will keep up certain FirstNet responsibilities along with DirecTV and other global customer relationships.

The companies expect the deal to close in 6-9 months.

AT&T says it’s already surpassed its monetization goal of a net $6B-$8B for 2019, with $10B raised year-to-date (more than $11B including this deal).

“Given the company’s confidence in reaching a net debt-to-adjusted EBITDA ratio in the 2.5x range this year, shareholders should expect that share buybacks will be in the mix in the fourth quarter of 2019, along with continued de-levering,” AT&T says.

AT&T is down 0.5% premarket.

Source: M A News on Seeking Alpha