- 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.