New Issue: NII Capital prices $500 million 8 7/8% 10-year notes to yield 9%

By Paul A. Harris

St. Louis, Dec. 9 - NII Capital Corp., formerly Nextel International, priced a $500 million issue of 8 7/8% 10-year senior unsecured notes (B1/BB-/) at 99.187 to yield 9% on Wednesday, according to an informed source.

The yield printed in the middle of the 8¾% to 9% yield talk. The issue price came slightly rich, relative to the approximately 1 point of discount talk.

Morgan Stanley & Co., Credit Suisse, Deutsche Bank Securities Inc. and Goldman Sachs & Co. ran the books for the quick-to-market deal.

Proceeds will be used for general corporate purposes, which may include, without limitation, expansion of the Reston, Va.-based telecommunications company's existing network, either through capital expenditures for internal expansion or acquisitions of other operators.

In addition, proceeds will be used for the acquisition of telecommunications spectrum licenses or other assets, the deployment of new network technologies, or repayment of outstanding debt.

Issuer:	NII Capital Corp.
Face amount:	$500 million
Proceeds:	$495,935,000
Maturity:	Dec. 15, 2019
Securities:	Senior unsecured notes
Bookrunners:	Morgan Stanley & Co., Credit Suisse, Deutsche Bank Securities Inc., Goldman Sachs & Co.
Coupon:	8 7/8%
Price:	99.187
Yield:	9%
Spread:	557 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Dec. 15, 2014, then callable at 104.438, 102.958, 101.479, par on and after Dec. 15, 2017
Trade date:	Dec. 9
Settlement date:	Dec. 15
Ratings:	Moody's: B1
	Standard & Poor's: BB-
Distribution:	Rule 144A/Regulation S with registration rights
Price talk:	8¾% to 9% yield, with approximately 1 point OID

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