Softbank has priced a Y370bn unsecured corporate bond at par. Proceeds will partly be used to repay notes issued by US telecoms retailer Brightstar, bought by the Japanese group two years ago.
Softbank (TYO:9984) has priced a Y370bn (US$3.02bn) unsecured corporate bond at par. It will partly be used to repay notes issued by US telecoms retailer Brightstar, bought by the Japanese group two years ago.
Proceeds will also be used to help Softbank fund investments and loans. The placement comes days after Softbank’s other US subsidiary, Sprint (NYSE:S), and Brightstar launched a new device leasing company, Mobile Leasing Solutions. The move was designed to give Sprint more liquidity.
Softbank’s new Y370bn notes carry a 2.13% coupon and mature in 2022. The underwriters were Mizuho, SMBC Nikko, Daiwa Securities, Mitsubishi UFJ Morgan Stanley, SBI Securities, Okasan Securities, IwaiCosmo, SMBC Friend, Tokai Tokyo and Mito Securities. Softbank said the notes are aimed at retail investors.
In October 2013 Softbank agreed to pay US$1.26bn for 57% of privately-held Brightstar. When the deal was announced, Softbank said it aimed “to strengthen its purchasing scale for mobile devices and further increase competitiveness both in Japan and the US”.
Softbank CEO Masayoshi Son (pictured) was so impressed with Brightstar CEO Marcelo Claure that he made him CEO of Sprint. Claure has been charged with changing the fortunes of Sprint, which has recently slipped from the number three to the number four US cellco by subscribers.