NII gets tenders for 99.9% of 2.875% notes in early conversion offer

By Jennifer Chiou

New York, July 25 - NII Holdings, Inc. said that holders of $299.955 million, or 99.9%, of its $300 million of 2.875% convertibles notes due 2034 tendered their securities in the company's early conversion offer.

As a result, the company issued 11,268,103 shares and paid about $25.5 million in cash as well as $4.2 million for accrued interest.

The company paid a premium of $85 per $1,000 principal amount, augmented from $80.

The notes had to be tendered by 5 p.m. ET July 23.

If all notes had been tendered, the total cash payment, which was funded from cash on hand, would have been $29.7 million.

The notes are convertible into common shares at 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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