Nashville, Jan. 27 - NII Holdings Inc. sold an upsized $250 million of 30-year convertible notes at par to yield 2.875% with a 50% initial conversion premium via bookrunner Banc of America Securities.
The issue, boosted from $200 million, sold at the tighter end of yield talk that called for a 2.75% to 3.25% coupon and at the cheap end of premium guidance of 50% to 55%.
NII intends to use proceeds for general corporate purposes, including the repayment of some outstanding debt.
On 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.
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.
Terms of the deal are:
| Issuer: | NII Holdings Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Banc of America Securities
|
| Amount: | $250 million, upped from $200 million
|
| Greenshoe: | $50 million, upped from $40 million
|
| Maturity: | Feb. 1, 2034
|
| Coupon: | 2.875%
|
| Price: | Par
|
| Yield to maturity: | 2.875%
|
| Conversion premium: | 50%
|
| Conversion price: | $159.72
|
| Conversion ratio: | 6.26095
|
| Contingent conversion: | 120%
|
| Call: | Non-callable for 7 years
|
| Put: | In years 7, 10, 15, 20 and 25
|
| Price talk: | 2.75-3.25%, up 50-55%
|
| Pricing date: | Jan. 27, after the close
|
| Settlement date: | Jan. 30
|
| Distribution: | Rule 144A
|
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