US-based telco NII Holdings is selling US$150m of 11.375% senior notes due 2019.
The offering is a re-tap of a high-yield series first issued in February, through which NII raised US$750m.
The issue price is 107.25, higher than the February issue,…
US-based telco NII Holdings is selling US$150m of 11.375% senior notes due 2019.
The offering is a re-tap of a high-yield series first issued in February, through which NII raised US$750m.
The issue price is 107.25, higher than the February issue, which priced at par. This means it has a yield to maturity of 10.6%, as opposed to the 11.375% of the previous offering.
“We believe [the difference in price] is an important nuance which the headline may not fully capture,” said Jennifer Fritzsche, senior analyst at Wells Fargo, in a note to investors.
“While we recognize this interest rate is still high, it represents over 100 bps improvement [for NII] vs. the prior issue.”
NII said it would use the proceeds for general corporate purposes.
The company is pursuing a new strategy whereby it is looking to dispose of its businesses in Argentina, Chile and Peru to focus on its operations in Brazil and Mexico.
Last week, the company agreed to sell its Peruvian business, Nextel Peru, to Chilean telco Entel for US$400m. The LatAm specialist has previously said it is also courting offers for up to 4,500 towers in Mexico and Brazil and expects to secure a sale and leaseback deals for the sites this year.
