Aug. 9, 2013
, Inc. [NASDAQ: NIHD], a provider of differentiated mobile communication services operating under the Nextel brand in
, today announced it has agreed to sell approximately 2,790 towers in
and 1,666 towers in
American Tower Corporation
[NYSE: AMT] in two separate transactions for total estimated proceeds based on current foreign currency exchange rates of
, respectively, subject to certain adjustments, including adjustments based on the actual number of towers sold. Both Nextel Brazil and Nextel Mexico agreed to leaseback the towers from American Tower for a minimum 12-year initial lease term and have the option to extend the lease for additional renewal periods. NII International Telecom S.C.A, a subsidiary of NII based in
, has agreed to provide certain credit support with respect to the obligations of Nextel Brazil. The transaction agreements provide that all payments, including the purchase price and site rental, will be made in local currencies. As a result, the estimated U.S. dollar denominated proceeds amounts are subject to changes in value of the local currencies relative to the U.S. dollar.
"We are excited to reach agreement with American Tower and achieve our goal of unlocking the value of a significant portion of our tower assets while raising additional liquidity," said
, chief executive officer of NII Holdings. "We will use the proceeds from the transactions to support the continuing investments in our next generation network deployments in our largest markets,
, which we believe offer the best opportunity for value creation and long-term growth and profitability."
The transactions are subject to regulatory approvals and the initial closings are expected to be completed in the fourth quarter of 2013. The initial closings are expected to include about 4,000 towers and will be followed by subsequent closings as certain closing requirements relating to the remaining towers are satisfied.