Liberty Latin America Ltd. 8-K

What Happened

• Liberty Latin America Ltd. (LILA) announced (8-K filed May 21, 2026) that an authorized committee of its Board declared a special stock dividend: one newly issued 9.0% Fixed Rate Cumulative Perpetual Redeemable Series A Preference Share (US$0.01 par) for every ten common shares held as of a record date set by the committee. A press release announcing the declaration is furnished as Exhibit 99.1.

Key Details

• Dividend instrument: 9.0% Fixed Rate Cumulative Perpetual Redeemable Series A Preference Shares.
• Issuance ratio: 1 Series A Preference Share per 10 common shares.
• Dividend mechanics: dividends accrue daily at 9.0% per annum on the liquidation price; if declared they are payable quarterly on Mar 15, Jun 15, Sep 15, and Dec 15, commencing Sep 15, 2026.
• Liquidation/redemption: liquidation price is $25 plus any unpaid accumulated dividends; Company may redeem shares on or after the fifth anniversary of original issue date (with limited early redemption mechanics for certain transactions). Preference Share Designation filed as Exhibit 4.1.

Why It Matters

• This is a stock (not cash) special dividend that creates a new class of perpetual preferred shares with a cumulative 9.0% dividend feature and a $25 liquidation base per preferred share.
• The terms restrict the Company from paying dividends on or repurchasing common or certain other shares while accrued unpaid preference dividends remain unpaid or unreserved, which can affect future common-share distributions.
• The Series A shares carry limited voting rights but include protections for holders (including potential director election rights if dividends go unpaid for six quarterly periods), which could affect corporate governance if dividends are missed.