NII Holdings gets tenders for conversion for nearly all 3.5% convertibles

By Jennifer Chiou

New York, Dec. 14 - NII Holdings, Inc. announced it received tenders for conversion for $91.362 million of its $91.4 million of 3.5% convertible notes due 2033.

In result, the company issued 6,852,150 shares and paid a cash inducement premium of $4,568,100 as well as interest of $790,535.

The company was offering a cash payment of $50.00 per $1,000 principal amount of notes.

The tender offer expired at 5 p.m. ET on Dec. 12, and the notes are expected to be converted on Dec. 14. The offer began on Nov. 13.

The notes are convertible at a conversion price of $13.33 per share of NII's common stock.

If all of the notes are tendered for conversion, the company previously said it would issue 6.9 million shares and pay $5.4 million for the cash payments and accrued interest.

Full conversion of the notes would eliminate $3.2 million of annual interest expense.

NII Holdings is based in Reston, Va., and provides wireless communication services in Latin America.

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