Liberty Latin America announced that it has reached an agreement with Phoenix Tower International to monetize approximately 1300 of its mobile tower sites across Panama, Jamaica, The Bahamas, Puerto Rico, Barbados, and the British Virgin Islands. The transaction also provides advantageous arrangements to extend coverage with a further 500 sites being built by Liberty Latin America and PTI over the next five years. Inclusive of these commitments, the total proceeds will increase to $407 million. Net proceeds are expected to be used to reduce debt and further invest in the Company's businesses.
The terms of the transaction include long-term Master Lease Agreements for each market for the Company's continued use of the telecommunications towers infrastructure following completion of the transaction.
Balan Nair, President and CEO, Liberty Latin America
We are pleased to work with a high-quality partner with extensive operating experience in our region in PTI and reach an agreement that crystallizes the value of our mobile tower infrastructure assets. In addition, the long-term lease agreements and ongoing coverage extension will enable us to continue delivering leading mobile services to our customers and support network expansion including future 5G deployment plans across the Caribbean and Latin America, while lowering capital costs associated with these assets. This deal is a great example of our disciplined approach to delivering shareholder value through free cash flow accretive transactions.
Dagan Kasavana, Chief Executive Officer, Phoenix Tower International
PTI is excited to partner with Liberty Latin America and expand its presence in the Caribbean and Panama. This transaction strengthens PTI's presence in existing markets while representing new market expansion for PTI in the markets of The Bahamas, BVI, and Barbados. As the largest independent owner of wireless towers in the Americas, we look forward to enhancing wireless access in these markets by serving all our wireless customers and the populations of the region with better connectivity and solutions to help our business partners achieve their goals. We appreciate greatly the hard work of both teams to consummate this fantastic transaction.
