NII Holdings $100 million convertible talked at 3.5-4.0%, up 27.5-32.5%

By Ronda Fears

Nashville, Sept. 8 - Price talk on the NII Holdings Inc. $100 million of 30-year convertible notes puts the yield at 3.5% to 4.0% and the initial conversion premium at 27.5% to 32.5%.

The Rule 144A deal, via lead manager Morgan Stanley, is scheduled to price after the market close Wednesday.

The issue will be non-callable for five years, with puts in years seven, 10, 15, 20 and 25. There also will be a 110% contingent conversion trigger.

Holders will have dividend protection by way of a conversion ratio adjustment.

NII plans to use proceeds primarily to pay down outstanding debt under its equipment financing facilities.

There is a $20 million greenshoe available.

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