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NII Holdings and American Tower strike tower sale/leaseback agreement

  • NII Holdings (NIHD +1.1%) enters into a sale/leaseback agreement with American Tower (AMT +2%). The former will sell 2,790 towers in Brazil and 1,666 towers in Mexico to the latter for $811M and sign a minimum 12-year lease agreement with the option to renew.
  • The sale of 4,000 of the towers will close in Q4.
  • The transaction will boost NII's liquidity. The Latin American carrier had $5.7B+ in debt on its balance sheet as of June 30, and nearly $1.8B in cash/investments.
  • NII will account for the newly-leased towers as capital leases, and expects the transactions to have a positive impact on OIBDA.
  • The company has now executed on its two liquidity initiatives (outlined in the Q4 CC). The other initiative, a $700M debt refinancing deal, took place in May.
Comments (1)
  • $NIHD actually has executed on four deals, 1.two refinancings 2.sale of Nextel Peru 3.sale leasebackof 4456 towers, which pricing has been misinterpreted by the street and creates big correction opportunity on Monday. see our Instablog Post
    10 Aug 2013, 09:34 AM Reply Like
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