By Kenneth Lim
Boston, May 31 - NII Holdings Inc. priced $1 billion of five-year convertible senior unsecured notes at the cheap end of talk on Wednesday to yield 3.125% with an initial conversion premium of 45%.
The convertibles were talked at a coupon of 2.625% to 3.125% and an initial conversion premium of 45% to 50%. They were offered at par.
There is an over-allotment option for an additional $200 million.
Deutsche Bank was the bookrunner of the Rule 144A offering.
The convertibles are non-callable and may not be put.
There is a contingent conversion trigger at 120% of the conversion price.
The convertibles have dividend and takeover protection.
NII, a Reston, Va.-based provider of digital wireless communication services, said it will use the proceeds to buy back up to $250 million of its common stock and to fund general corporate purposes.
| Issuer: | NII Holdings Inc.
|
| Issue: | Convertible senior unsecured notes
|
| Bookrunner: | Deutsche Bank
|
| Amount: | $1 billion
|
| Greenshoe: | $200 million
|
| Maturity: | June 15, 2012
|
| Coupon: | 3.125%
|
| Price: | Par
|
| Yield: | 3.125%
|
| Conversion premium: | 45%
|
| Conversion price: | $118.32
|
| Conversion ratio: | 8.4517
|
| Contingent conversion: | 120%
|
| Contingent payment: | None
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 2.625%-3.125%, up 45%-50%
|
| Pricing date: | May 30 after the close
|
| Settlement date: | June 5
|
| Distribution: | Rule 144A
|
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