US-based NII Holdings has announced that it has completed the sale of a number of communications sites in Mexico to American Tower Corporation. As per the transaction, NII Holdings has confirmed that 1,483 towers have been divested for total proceeds of MXN4.95 billion (USD374.3 million). Under the terms of the deal, NII Holdings subsidiary Nextel de Mexico is understood to have agreed to lease back the communications sites from American Tower for a minimum twelve-year initial lease term, while it also has the option to extend the lease for additional renewal periods.
NII Holdings also noted that its agreement with American Tower provides for a post-closing adjustment period, after which it will recognise the sale of the sites and any associated gain, which will be recognised over the lease term. At that time NII Holdings has said it will record a capital lease liability of approximately USD80 million to USD125 million, while it says it expects to complete the sale of the remaining communications sites in Mexico that were agreed to be sold once closing conditions are met.