RESTON, Va., April 30, 2015 /PRNewswire/ -- NII Holdings,
Inc. today announced it has completed the previously announced sale
of its Mexican operations to AT&T (NYSE: T) for an aggregate
purchase price of $1.875 billion,
subject to customary post-closing adjustments. After
deducting Nextel Mexico's outstanding indebtedness net of its cash
balance and applying estimates of other specified purchase price
adjustments at closing, NII received $1.448
billion of net proceeds, including $187.5 million of cash placed in escrow to secure
specified indemnity obligations. The Company used $350.5 million of the net proceeds from the sale
to repay in full the outstanding principal and accrued interest due
under its debtor-in-possession loan that it borrowed in
March 2015.
The transaction, which was structured as a sale of the parent
company of Nextel Mexico, was completed as part of NII's broader
debt restructuring efforts. A portion of the net proceeds
from the transaction will be used to support NII's operations in
Brazil and the remainder will be
used to fund distributions to specified creditors, pursuant to the
proposed plan of reorganization in the Chapter 11 bankruptcy
proceedings of NII and certain of its subsidiaries, that is pending
before the United States Bankruptcy Court for the Southern District
of New York (the "Bankruptcy
Court"). The plan of reorganization remains subject to the
approval of the creditors in the bankruptcy proceedings and the
approval of the Bankruptcy Court.
"This sale represents an important step forward as we look to
emerge from Chapter 11 reorganization as a stronger, healthier
company that is positioned to compete in Brazil's wireless marketplace," said
Steve Shindler, NII's chief
executive officer. "This deal strengthens our liquidity position as
we pursue growth opportunities in Brazil and build value in our business over
the long-term."
"We are proud of the success that our team in Mexico has achieved as a part of our company
for 18 years, and we are grateful to all of our employees there for
their dedication and service," added Shindler.
About NII Holdings, Inc.
NII Holdings, Inc., a
publicly held company based in Reston,
VA, is a provider of differentiated mobile communication
services for businesses and high value consumers. NII Holdings,
operating under the Nextel brand in Brazil and Argentina, offers fully integrated wireless
communications tools with digital cellular voice services, data
services, wireless Internet access and Nextel Direct
Connect® and International Direct ConnectSM,
a digital two-way radio. NII Holdings has been named one of the
best places to work among multinationals in Latin America by the Great Place to
Work® Institute. Visit the Company's website at
www.nii.com.
Nextel, the Nextel logo and Nextel Direct Connect are
trademarks and/or service marks of Nextel Communications,
Inc.
Visit NII Holdings' news room for news and to access the news
centers for the Company's market operations: nii.com/newsroom.
Safe Harbor Statement
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995. This news release includes "forward-looking
statements" within the meaning of the securities laws. The
statements in this news release regarding the business outlook,
future performance and forward-looking guidance, as well as other
statements that are not historical facts, are forward-looking
statements. Forward-looking statements are estimates and
projections reflecting management's judgment based on currently
available information and involve a number of risks and
uncertainties that could cause actual results to differ materially
from those suggested by the forward-looking statements. With
respect to these forward-looking statements, management has made
assumptions regarding, among other things, the Company's ability to
meet its business plans, the Company's ability to develop and gain
creditor support for a plan of reorganization and emerge from its
Chapter 11 bankruptcy proceedings, customer growth and retention,
pricing, network usage, operating costs, the timing of various
events, the economic and regulatory environment and the foreign
exchange rates that will prevail during 2015. Future
performance cannot be assured and actual results may differ
materially from those in the forward-looking statements. Some
factors that could cause actual results to differ include the risks
and uncertainties relating to the impact of liquidity
constraints; the impact of more intense competitive
conditions and changes in economic conditions in the markets we
serve; the risk that the Company's network technologies will not
perform properly or support the services our customers want or
need; the ability of the Company to continue as a going concern;
the ability to obtain Bankruptcy Court approval with respect to
motions in the Chapter 11 proceedings; the ability to develop,
obtain creditor support for, and complete one or more plans of
reorganization with respect to the Company's and certain of its
subsidiaries' Chapter 11 proceedings; the impact of Bankruptcy
Court rulings in the Chapter 11 proceedings and the outcome of the
Chapter 11 proceedings in general; the length of time the Company
and certain of its subsidiaries remain subject to the Chapter 11
proceedings and the Bankruptcy Court's jurisdiction; risks
associated with actions taken or motions filed by third parties in
the Chapter 11 proceedings, which may interfere with the ability to
develop and consummate one or more plans of reorganization once
such plans are developed; the potential adverse effects of the
Chapter 11 proceedings on the liquidity, results of
operations, brand or business prospects of the Company's operating
subsidiaries, the ability to execute the Company's business
and restructuring plan; increased legal costs related to the
Chapter 11 proceedings and other litigation; and the additional
risks and uncertainties that are described in NII Holdings' Annual
Report on Form 10-K for the fiscal year ended December 31, 2014, as well as in other reports
filed from time to time by NII Holdings with the Securities and
Exchange Commission. This press release speaks only as of its date,
and NII Holdings disclaims any duty to update the information
herein.
Media Contacts:
NII Holdings, Inc.
1875 Explorer Street, Suite 800
Reston, VA. 20190
(703) 390-5100
www.nii.com
Investor and Media Relations:
Tahmin Clarke
(703) 390-7174
tahmin.clarke@nii.com
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SOURCE NII Holdings, Inc.