U.S. Markets open in 4 hrs 20 mins

NII Holdings closes sale of communications sites to American Tower

NII Holdings (NIHD) announced the completion of the previously announced transaction to sell certain communications sites to American Tower (AMT). As part of the transaction, the company sold 1,483 communications sites in Mexico to American Tower for total proceeds of USD $374.3M based on current foreign currency exchange rates. As part of the transaction, Nextel Mexico agreed to lease back the communications sites from American Tower for a minimum 12-year initial lease term and has the option to extend the lease for additional renewal periods. The agreement with American Tower provides for a post-closing adjustment period, after which the company will recognize the sale of the sites and any associated gain, which will be recognized over the lease term. At that time, the company expects to record a capital lease liability of approximately $80M-$125M. The company expects to complete the sale of the remaining communications sites in Mexico that were agreed to be sold once closing conditions are met. The company remains on track to close the sale of communications sites in Brazil by year end for those sites that have satisfied the necessary closing conditions.