NII Holdings $200 million overnight convertible talked to yield 2.75-3.25%, up 50-55%

By Ronda Fears

Nashville, Jan. 26 - On the heels of releasing better-than-expected subscriber figures, NII Holdings Inc. tossed a $200 million overnight transaction to the convertible market after the close Monday. The 30-year senior notes were talked to yield 2.75% to 3.25% with a 50% to 55% initial conversion premium.

Banc of America Securities is bookrunner of the Rule 144A deal.

The issue will be non-callable for seven years with puts in years seven, 10, 15, 20 and 25.

There also will be a 120% contingent conversion trigger.

There is a $40 million greenshoe available.

NII intends to use proceeds for general corporate purposes, including the repayment of some outstanding debt.

Earlier Monday, NII Holdings, formerly known as Nextel International Inc., announced that it will report 2003 net subscriber additions of about 215,000, topping its previously announced guidance by 20%. The company also reaffirmed its previously announced guidance for overall financial results.

As a result, the common shares zoomed, closing up $4.48, or 4.39%, to $106.48.

NII said it added some 215,000 subscribers to its network in 2003, a 20% increase compared with the company's guidance for 180,000 net subscriber additions. Originally, the company expected 150,000 net subscriber additions for 2003, and that was boosted later in the year.

The better-than-expected subscriber growth was due to higher-than-expected gross additions and continued improvement in customer churn during fourth quarter, the company said.

"Our accomplishments for 2003 are a result of our focus on executing our profitable growth strategy," said Steve Shindler, chief executive of NII, in a company statement.

"We have exceeded the growth objectives that we originally established at the beginning of the year by 43%, while maintaining our focus on profitability. As we look ahead to 2004, we will maintain this focus and strive to deliver superior returns for all of our stakeholders."

NII will share details about its business as well as guidance for 2004 during a conference call in February. At that time, fourth-quarter and 2003 results also will be reported.

The Reston, Va.-based company provides digital wireless communication services principally in Mexico, Brazil, Peru and Argentina. It also provides analog specialized mobile radio services in Chile. In May 2002, NII filed for bankruptcy in Delaware and emerged in November 2002.

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