AT&T today sheared $1.95 billion off its mountain of debt by selling its wireless and wireline operations in Puerto Rico and the U.S. Virgin Islands. The deal will transfer spectrum, real estate, and 1.1 million wireless subscribers to Liberty Latin America.

The Federal Communications Commission (FCC) and Department of Justice (DoJ) will have to approve the transaction, but the companies are confident it will pass regulatory muster and expect the deal to close within six to nine months. About 1,300 AT&T employees will also move to Liberty Latin America, according to deal terms.

Multiple factors drove this decision, according to Roger Enter, founder and lead analyst at Recon Analytics. “It’s reducing the debt. Unlike so many other businesses [AT&T] can easily separate this from the mother ship so that helps structuring an easy deal,” he said.

The impacts of climate change and worsening storms in the region may have also weighed heavily on AT&T. “If you believe 99% of climate researchers then the hurricanes will get worse and Maria is the new normal, so you’re in constant rebuilding mode,” Entner said, referencing the hurricane that tore through Puerto Rico two years ago. “It’s a no-win situation holding on to those assets considering climate change.”

AT&T has been rebuilding and upgrading its network in Puerto Rico since Hurricane Maria devastated the island, its infrastructure, and its residents. “This is one of the first transactions driven by climate change,” Entner said.

Liberty Latin America plans to combine its broadband and TV business with AT&T’s assets to create a more integrated offering for customers. “At Liberty Latin America we are focused on investing in digital infrastructure, innovation, and 5G networks,” Balan Nair, president and CEO of the company, said in a prepared statement.

AT&T’s debt also remains a major point of concern among investors and $1.95 billion in cash will bolster its goal of reducing that liability. The company reported a high of $180 billion in debt when its acquisition of Time Warner closed and the company ended its most recent quarter with $162 billion in debt. At a recent investor conference, AT&T CEO Randall Stephenson said the company is on target to reduce its net debt by $20 billion by the end of 2019.

Following the close of its deal with Liberty Latin America, AT&T will have reached a cumulative monetization goal of a net $11 billion, according to the company. That surpasses its previously stated goal of a net $6 billion to $8 billion in 2019. “This transaction is a result of our ongoing strategic review of our balance sheet and assets to identify opportunities for monetization,” AT&T CFO John Stephens said in a prepared statement.

“When you look at the divestitures and the coming divestitures you have to look at what is easily separable from the mother ship, and those are international operations. I wouldn’t be surprised if Vrio was on the block as well,” Entner said.

Vrio is AT&T’s digital entertainment subscription business that provides service in 11 countries across South America and the Caribbean. It had 13.6 million subscribers at the end of 2017.

“AT&T has big international operations. It’s globally one of the largest IP providers. It could be quite possible that they’re looking at that,” Entner said. Puerto Rico was an underperforming business and “without the cruise ship business, [the U.S. Virgin Islands is] a horrible business too.”

AT&T also has a long history in Mexico, but Entner doesn’t view that business as a potential sale for the company. “If you look at things just in the short run you would try to sell the Mexican operations, but this is a long-term bet and in the long term this should work out,” he said. “There are a lot of reasons why they should keep it because it is a long-term bet and they [made] so many sacrifices for it.”

Entner doesn’t expect that dynamic to change until new leadership reaches the top of AT&T. “It’s easier to kick over the sandcastles than to build them,” he said. “You’re much more invested when you build them.”