NII Holdings Announces Closing of Sale of Communications Sites in Brazil

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Yesterday, NII Holdings announced the completion of the transaction to sell certain communications sites in Brazil to American Tower Corporation. As part of the transaction, the company sold 1,940 communications sites to American Tower for total proceeds of BRL$813.8 million, which is equivalent to USD$348 million based on current foreign currency exchange rates. As part of the transaction, Nextel Brazil 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. According to NII Holdings, “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 up to $240 million relating to the sale of the Brazil communications sites.”

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