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Subject:  Re: NII Capital (NIHD) 2016 Bonds 10% Date:  11/8/2013  10:38 AM
Author:  ytm Number:  35096 of 36324


What attracted to me to this play in the first place was their vast portfolio of spectrum. As you know they fell short recently with respect to milestones that needed to be executed. But a large part of this was due to a sprint equipment shutdown that was out of their control. But in terms of selling off non-core tower assets and focusing on the bigger markets with 3G still think there is allot of potential. They just need to focus on retention and acquiring new subs. If they can turn this corner its a different ball game.

What revelation that just came out today is that sir Richard Branson has now declared this on his website:

"Within the next 5 years, we hope that anyone in Latin America
can use a Virgin Mobile phone.”


So the reality is, NIHD has the biggest spectrum portfolio in place already running now 3G. They just have to execute. Their debt amount of nearly $6B might not make them an attractive acquisition target at this point of development, but it sounds like 2014 is all set to go. The bonds are trading as you said, another shoe is going to drop.

Makes sense buying the bonds in the $50's vs. shorter term and getting closer to the recovery rating range. At that point, if it comes to that, the time to duration is completely irrevelevant; all that matters than is your cost basis and how far of a spread it is away vs. recover range.

Have you tried Molycorp's 2020 or 2021 I think it is 10% bonds? They are senior class and have a decen recovery rating.
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