NII boosts cash premium in early conversion offer for $300 million 2.875% notes

By Jennifer Chiou

New York, July 9 - NII Holdings, Inc. announced the increase of the cash inducement premium in the tender offer to encourage conversion of its $300 million of 2.875% convertibles notes due 2034.

The company will now pay a premium of $85.00 per $1,000 principal amount, augmented from $80.00, plus accrued interest up to but not including the conversion date in addition to converting the notes at the regular rate.

The notes must be tendered by 5 p.m. ET July 23. The conversion date is expected to be the second business day after the expiration date.

If all notes are tendered, the total cash payment, which will be funded from cash on hand, will be $29.7 million.

The notes are convertible into common shares a rate of 37.566 shares per $1,000 principal amount of notes.

The notes are redeemable beginning Feb. 7, 2011.

The offer began on June 22.

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

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