NII Holdings tenders for conversion of 3.5% convertibles

By Angela McDaniels

Seattle, Nov. 13 - NII Holdings, Inc. is offering a cash payment of $50 per $1,000 principal amount of notes to holders who tender the company's $91.4 million 3.5% convertible notes due 2033 for conversion, according to a company news release.

Noteholders who tender will also receive accrued interest up to but excluding the conversion date.

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

The notes are convertible at a conversion price of $13.33 per share of NII's common stock, which closed at $62.69 on Friday (Nasdaq: NIHD).

If all of the notes are tendered for conversion, 6.9 million shares of common stock will be issued and the company will use cash on hand to 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, according to a company news release.

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

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