Japanese mobile carrier Softbank plans to issue JPY370bn (US$3.96bn) in bonds, to finance its acquisition of US operator Sprint.
The company previously confirmed to TelecomFinance that it would be issuing four-year notes, but further details such as the…
Japanese mobile carrier Softbank plans to issue JPY370bn (US$3.96bn) in bonds, to finance its acquisition of US operator Sprint.
The company previously confirmed to TelecomFinance that it would be issuing four-year notes, but further details such as the interest rate had not yet been fixed.
In a statement to the Tokyo Stock Exchange today, Softbank announced that it would issue a JPY300bn (US$3.2bn) bond with a coupon of 1.47% aimed at retail investors and JPY70bn (US$7.5bn) notes which carry a coupon of 1.467%, aimed at institutional investors.
The offerings mature on 10 March 2017 and 1 March 2017 respectively.
The Japan Credit Rating Agency has given the two bonds an ‘A’ rating, which is under review for a possible downgrade.
Nomura, Daiwa, Mizuho, SMBC Nikko, Mitsubishi UFJ Morgan Stanley and SBI are underwriting the JPY300bn bond.
Mizuho, SMBC Nikko, Daiwa, Nomura, Mitsubishi UFJ Morgan Stanley and Deutsche Securities are acting as bookrunners on the JPY70bn offering.
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.
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.
