Japanese telco Softbank plans to issue US$3.2bn notes, to provide longer-term financing for its acquisition of US operator Sprint Nextel.
The new debt offering will convert part of the US$17.7bn in short-term loans used to purchase a 70% stake in Sprint…
Japanese telco Softbank plans to issue US$3.2bn notes, to provide longer-term financing for its acquisition of US operator Sprint Nextel.
The new debt offering will convert part of the US$17.7bn in short-term loans used to purchase a 70% stake in Sprint into bonds, according to two sources cited by Reuters.
The four-year corporate bonds will be issued as early as March, said the sources.
In October 2012 Softbank agreed to acquire 70% of Sprint for US$20.1bn, of which US$12.1bn will be paid to Sprint’s shareholders and US$8bn of capital will be put on to Sprint’s balance sheet.
Softbank financed the transaction through a combination of cash on hand and a syndicated financing facility. Mizuho, Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ and Deutsche Bank acted as mandated lead arrangers.
Sprint is currently battling with US DTH provider Dish Network to acquire the remaining shares in wireless operator Clearwire, in which it already holds a 63% stake. The Clearwire deal is seen as an integral part of Softbank’s strategy to gain scale in the US against the mobile market heavyweights.
Softbank’s acquisition of Sprint is expected to close in mid-2013. Sprint also hopes to acquire the remainder of Clearwire by that point.
