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.
NII Holdings, Inc.
1875 Explorer Street, Suite 800
Reston, VA. 20190
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