NII Holdings And American Tower Corporation Announce $811 Million Tower
Nextel Brazil and Nextel Mexico agree to sell and leaseback 2,790 towers and
1,666 towers, respectively
Proceeds from sales further strengthen NII's liquidity position and funding
for next generation network deployments in Brazil and Mexico
RESTON, Va., Aug. 9, 2013
RESTON, Va., Aug. 9, 2013 /PRNewswire/ --NII Holdings, Inc. [NASDAQ: NIHD], a
provider of differentiated mobile communication services operating under the
Nextel brand in Latin America, today announced it has agreed to sell
approximately 2,790 towers in Brazil and 1,666 towers in Mexico to American
Tower Corporation [NYSE: AMT] in two separate transactions for total estimated
proceeds based on current foreign currency exchange rates of $413 million and
$398 million, respectively, subject to certain adjustments, including
adjustments based on the actual number of towers sold. Both Nextel Brazil and
Nextel Mexico agreed to leaseback the towers from American Tower for a minimum
12-year initial lease term and have the option to extend the lease for
additional renewal periods. NII International Telecom S.C.A, a subsidiary of
NII based in Luxembourg, has agreed to provide certain credit support with
respect to the obligations of Nextel Brazil. The transaction agreements
provide that all payments, including the purchase price and site rental, will
be made in local currencies. As a result, the estimated U.S. dollar
denominated proceeds amounts are subject to changes in value of the local
currencies relative to the U.S. dollar.
(Logo: http://photos.prnewswire.com/prnh/20110919/FL70458LOGO )
"We are excited to reach agreement with American Tower and achieve our goal of
unlocking the value of a significant portion of our tower assets while raising
additional liquidity," said Steve Shindler, chief executive officer of NII
Holdings. "We will use the proceeds from the transactions to support the
continuing investments in our next generation network deployments in our
largest markets, Brazil and Mexico, which we believe offer the best
opportunity for value creation and long-term growth and profitability."
The transactions are subject to regulatory approvals and the initial closings
are expected to be completed in the fourth quarter of 2013. The initial
closings are expected to include about 4,000 towers and will be followed by
subsequent closings as certain closing requirements relating to the remaining
towers are satisfied.
NII's service coverage and next generation deployment plans will not be
affected by this transaction. The Company will continue to locate its network
equipment on the towers and will have additional space available for
The Company expects that a majority of the assets sold and leased-back will be
accounted for as capital leases. As a result, the transactions are expected to
have a positive impact to OIBDA, but are not expected to materially impact
"The sale of our towers in Brazil and Mexico provides us with funding at an
attractive cost of capital and valuation of our tower assets," said Juan
Figuereo, executive vice president and chief financial officer of NII
Holdings. "The sale proceeds, when added to the $1.8 billion in cash, cash
equivalents and short term investments on hand as of June 30, 2013, and the
$380 million in additional funding available under our existing equipment
financing arrangements in Mexico and Brazil on that date, provide us with
significant liquidity to support the long-term investments we are making to
drive profitable growth for the Company."
The Company was advised by Deutsche Bank Securities Inc. as financial advisor
and by Jones Day and Lape Mansfield Nakasian & Gibson, LLC as legal advisors.
About NII Holdings, Inc.
NII Holdings, Inc., a publicly held company based in Reston, Va., is a
provider of differentiated mobile communication services for businesses and
high value consumers in Latin America. NII, operating under the Nextel brand
in Brazil, Mexico, Argentina, Peru and Chile, offers fully integrated wireless
communications tools with digital cellular voice services, data services,
wireless Internet access and Nextel Direct Connect^® and International Direct
Connect^SM, a digital two-way radio. NII is a Fortune 500 and Barron's 500
company, and has also been named one of the best places to work among
multinationals in Latin America by the Great Place to Work^® Institute. The
company trades on the NASDAQ market under the symbol NIHD. Visit the company's
website at www.nii.com.
Nextel, the Nextel logo and Nextel Direct Connect and International Direct
Connect are trademarks and/or service marks of Nextel Communications, Inc.,
and are used by NII's subsidiaries under license in Latin America.
Visit NII Holdings' news room for news and to access our markets' news center:
Safe Harbor Statement
This release includes "forward-looking statements" regarding the proposed sale
transaction, future service offerings, business outlook and future
performance, as well as other statements that are not historical or current
facts. Forward-looking statements are qualified by the inherent risks and
uncertainties surrounding future expectations generally and may materially
differ from actual future results. Risks and uncertainties that could affect
the forward-looking statements in this release include: the failure to
successfully close the transaction contemplated by the sale purchase
agreement, including due to a failure to meet closing conditions; unexpected
costs or liabilities; the impact of more intense competitive conditions and
changes in economic conditions in the Mexican and Brazilian telecommunications
markets; the risk that our network technologies will not perform properly or
support the services our customers want or need, including the risk that
technology developments to support our services will not be timely delivered;
the risk that customers in the markets we serve will not find our services
attractive; and the additional risks and uncertainties that are described in
NII's Annual Report on Form 10-K for the fiscal year ended December 31, 2012,
as well as in other reports filed from time to time by NII Holdings with the
Securities and Exchange Commission. This press release speaks only as of its
date, and NII disclaims any duty to update the information herein, except as
required by law.
NII Holdings, Inc.
1875 Explorer Street, Suite 1000
Reston, VA. 20190
Investor Relations: Tim Perrott
Media Relations: Claudia E. Restrepo
SOURCE NII Holdings, Inc.
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