NII Holdings Bonds Rise on Stock Purchase Deal

NII Holdings Inc.’s bonds rose after the mobile-phone carrier that missed an interest payment last week said it agreed to sell an equity interest in its Nextel Chile SA unit.

The Reston, Virginia-based company’s $700 million of 7.875 percent notes due August 2019 jumped 3 cents on the dollar to 69 cents at 10:01 a.m. in New York to yield 17.5 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. Those securities traded at 86 cents July 17.

Fucata SA will purchase all of NII’s equity interest in the Chilean unit, according to a filing today. About 1.5 percent of NII’s revenue came from Chile in 2013, according to data compiled by Bloomberg.

NII, which operates under the Nextel brand in Latin America, missed $118.8 million in coupon payments Aug. 15, according to a statement. The company said it has 30 days to make the disbursement.

Tahmin Clarke, a spokesman for NII, didn’t immediately respond to an e-mail and telephone call seeking comment.

The phone carrier, which does most of its business in Latin America, is negotiating with creditors about how to restructure, including possible debt swaps or exchanging bonds for equity in a reorganized company, according to the statement.

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