Liberty Latin America : Communications PR Holding LP Annual Report for the year ended December 31, 2022

Liberty Communications PR Holding LP

December 31, 2022 Annual Report

Liberty Communications PR Holding LP

1550 Wewatta Street, Suite 710

Denver, Colorado 80202

Liberty Communications PR Holding LP

TABLE OF CONTENTS

Forward-looking Statements ................................................................................................................................

Description of Our Business .................................................................................................................................

Management's Discussion and Analysis of Financial Condition and Results of Operations .........................

Page
Number
I-1
I-4
II-1
Consolidated Financial Statements:
Independent Auditors' Report ............................................................................................................................	II-12
Consolidated Balance Sheets as of December 31, 2022 and 2021 ....................................................................	II-14
Consolidated Statements of Operations for the Years Ended December 31, 2022, 2021 and 2020 ..................	II-15
Consolidated Statements of Equity for the Years Ended December 31, 2022, 2021 and 2020 .........................	II-16
Consolidated Statements of Cash Flows for the Years Ended December 31, 2022, 2021 and 2020 .................	II-17
Notes to Consolidated Financial Statements ......................................................................................................	II-18

Unless the context requires otherwise, references to "Liberty PR", "we," "our," "our company" and "us" in this annual report may refer to Liberty Communications PR Holding LP or collectively to Liberty Communications PR Holding LP and its subsidiaries. We have used several other terms in this annual report, most of which are defined or explained below.

• 2026 SPV Credit Facility .................... $1.0 billion principal amount LIBOR + 5.0% term loan facility due October 15, 2026 issued by LCPR Loan Financing (repaid during 2021)

• 2027 LPR Senior Secured Notes ........ $1.2 billion aggregate principal amount 6.75% senior secured notes due October 15, 2027 issued by LCPR Senior Secured Financing

2027 LPR Senior Secured Notes

$90 million principal amount issued at 102.5% of par under the existing 2027 LPR

Add-on ................................................ Senior Secured Notes indenture

• 2028 LPR Term Loan ......................... $620 million principal amount LIBOR + 3.75% term loan facility due October 15,

  2028 issued by LCPR Loan Financing

• 2029 LPR Senior Secured Notes ........ $820 million principal amount 5.125% senior secured notes due July 15, 2029 issued

• by LCPR Senior Secured Financing

ACP ...................................................... Affordable Connectivity Program

Acquisition Agreement ....................... Stock purchase agreement entered into between Liberty PR and Liberty Latin

America and AT&T to acquire the AT&T Acquired Entities

Adjusted OIBDA ................................. Operating income or loss before share-based compensation, depreciation and

amortization, related-party fees and allocations, provisions and provision releases

related to significant litigation and impairment, restructuring and other operating

items. Other operating items include (i) gains and losses on the disposition of long-

lived assets, (ii) third-party costs directly associated with successful and unsuccessful

acquisitions and dispositions, including legal, advisory and due diligence fees, as

applicable, and (iii) other acquisition-related items, such as gains and losses on the

settlement of contingent consideration.

ARPU ................................................... Average monthly subscription revenue per average fixed RGU or mobile subscriber,

as applicable

ASU ...................................................... Accounting Standards Update AT&T ................................................... AT&T Inc.

AT&T Acquired Entities .................... Collectively, Liberty Mobile Inc., Liberty Mobile Puerto Rico Inc. and Liberty

Mobile USVI Inc.

AT&T Acquisition .............................. October 31, 2020 acquisition of all of the outstanding shares of the AT&T Acquired

Entities

B2B ....................................................... Business-to-business

B2B Disposal ........................................ The United States Department of Justice, as a condition of approval of the AT&T

Acquisition, required us to divest certain B2B operations that were a part of our then-

existing operations in Puerto Rico

BBVI Acquisition ................................ December 31, 2021 acquisition of 96% of Broadband VI, LLC Broadband VI ...................................... Broadband VI, LLC

C&W .................................................... Cable & Wireless Communications Limited and its subsidiaries Cayman Holding ................................. LCPR Cayman Holding Inc.

CIP ........................................................ Construction-in-process

CLEC ................................................... Competitive local exchange carrier

Communications Act .......................... The United States Communications Act of 1934, as amended CPE ....................................................... Customer premises equipment

CRU ...................................................... Corporate Responsible User

DirecTV ................................................ DIRECTV Latin America Holdings, Inc. Dish Network ....................................... Dish Network Corporation

DOCSIS ................................................ Data over cable service interface specification DOJ ....................................................... United States Department of Justice

DTH ...................................................... Direct-to-home

DVR ...................................................... Digital video recorder EBU ...................................................... Equivalent billing unitEIP ........................................................ Equipment installment-plan

ETC ...................................................... Eligible Telecommunications Carrier FASB .................................................... Financial Accounting Standards Board

FCC ...................................................... United States Federal Communications Commission

FCPA .................................................... United States Foreign Corrupt Practices Act of 1977, as amended FTTH .................................................... Fiber-to-the-home/-cabinet/-building/-node

GITCs ................................................... General information technology controls HD ......................................................... High definition

HFC ...................................................... Hybrid fiber coaxial cable networks

Hurricane Fiona

Hurricane impacting our operations in during September 2022

ILEC ..................................................... Incumbent local exchange carrier

Infrastructure Act ............................... The Infrastructure Investment and Jobs Act of 2021 Law 213 ................................................ The Puerto Rico Telecommunications Act of 1996 LCPR .................................................... Liberty Communications of Puerto Rico LLC

LCPR Loan Financing ........................ LCPR Loan Financing LLC, a consolidated special purpose financing entity that was created for the primary purpose of facilitating the issuance of certain term loan debt. LCPR is required to consolidate LCPR Loan Financing as a result of certain variable interests in LCPR Loan Financing, for which LCPR is considered the primary beneficiary.

LCPR Senior Secured Financing ....... LCPR Senior Secured Financing Designated Activity Company, a consolidated special purpose financing entity that was created for the primary purpose of facilitating the issuance of certain debt offerings. Liberty Mobile is required to consolidate LCPR Senior Secured Financing as a result of certain variable interests in LCPR Senior Secured Financing, of which Liberty Mobile is considered the primary beneficiary.

LCPR Ventures ................................... LCPR Ventures LLC Liberty Latin America ........................ Liberty Latin America Ltd.

Liberty Mobile ..................................... Liberty Mobile Inc. and it subsidiaries

Liberty PR ........................................... Liberty Communications PR Holding LP and its subsidiaries, which include LCPR and Liberty Mobile and its subsidiaries

LIBOR .................................................. London Inter-Bank Offered Rate

LiLAC Loan ........................................ $70 million loan agreement with another subsidiary of Liberty Latin America LiLAC Services ................................... LiLAC Services Ltd.

LiLAC Services Receivable ................ $385 million principal amount loan due July 15, 2029, except as otherwise noted, issued by LCPR Ventures to LiLAC Services comprised of: (i) $268 million loaned in March 2021 that accrues interest at 5.125%, (ii) $28 million loaned in August 2022 that accrues interest at 6.40%, (iii) $57 million loaned in October 2022 that accrues interest at 8.9% and (iv) $32 million loaned in December 2022 that accrues interest at 7.2% due December 2025

LLA Holdco ......................................... LLA Holdco LLC

LPR Credit Facilities .......................... Senior secured credit facilities comprised of: (i) 2028 LPR Term Loan; and (ii) LPR

Revolving Credit Facility

LPR Revolving Credit Facility .......... $173 million LIBOR + 3.5% revolving credit facility due March 15, 2027

LPR Senior Secured Notes ................. Senior secured notes comprised of: (i) 2029 LPR Senior Secured Notes; (ii) 2027

LPR Senior Secured Notes; and (iii) 2027 LPR Senior Secured Notes Add-on

MMG Program .................................... The Middle Mile Broadband Infrastructure Grant Program established by the

Infrastructure Act

Network Extensions ............................ Network extension and upgrade programs across Liberty Latin America NTIA ..................................................... National Telecommunications and Information Administration

OFAC ................................................... Office of Foreign Assets Control

PRTC .................................................... Telecommunications Of Puerto Rico, Inc. RGU ...................................................... Revenue generating unit

Senior Secured Covenant Group ....... LCPR and LLA Holdco and its subsidiaries SIM ....................................................... Subscriber identification module

SOHO ................................................... Small office / home office

TB ......................................................... The Puerto Rico Telecommunications Regulatory Bureau

TSA ....................................................... Transition services agreement dated October 31, 2020 by and between AT&T and

Leo Cable LP, a wholly-owned subsidiary of Liberty Latin America, for a period up to 36 months following the closing of the AT&T Acquisition

UPR Fund ............................................ Uniendo a Puerto Rico Fund

U.S. ....................................................... United States

USD ...................................................... United States Dollar

U.S. GAAP ........................................... Generally accepted accounting principles in the United States USF ....................................................... Universal Service Fund

USVI ..................................................... U.S. Virgin Islands VoD ....................................................... Video-on-demand

VoIP ...................................................... Voice-over-internet-protocol

Weather Derivatives ........................... Weather derivative contracts that provide insurance coverage for certain weather-related events