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.