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US digital trunking firm NII Holdings (Nasdaq: NIHD), which operates the Nextel brand in several Latin American countries, is planning to issue some US$500mn in senior notes due in 2021, the company reported.
Proceeds from the notes - to be issued by subsidiary NII Capital Corp - will go toward general corporate purposes, which may include expanding the existing network, acquiring spectrum licenses or other assets, deploying new network technologies, or refinancing, repaying or repurchasing outstanding debt.
Moody's Investors Service assigned its B2 rating to the proposed new senior unsecured note offering, while also affirming the B1 corporate family rating of NII Holdings.
In February, NII announced it had reached an agreement with Chinese telecom firm Huawei for the delivery of end-to-end W-CDMA solutions to build out 3G networks in Mexico and Brazil. Huawei previously built a W-CDMA network for Nextel Peru and is currently implementing a similar project for Nextel Chile.
NII Holdings recorded net profits of US$98.6mn in 4Q10, compared with US$59.6mn in the year-previous period, while revenues hit US$1.52bn, up from US$1.24bn in 4Q09.