Japanese telco Softbank plans to enter into a Y1.98 trillion (US$20bn) loan agreement with 19 banks tomorrow, in what will be one of the largest-ever syndicated facilities in Asia Pacific.
The proceeds of the transaction, which has already received…
Japanese telco Softbank plans to enter into a Y1.98 trillion (US$20bn) loan agreement with 19 banks tomorrow, in what will be one of the largest-ever syndicated facilities in Asia Pacific.
The proceeds of the transaction, which has already received board approval, will predominantly be used to replace the US$13.4bn bridge facility it used to acquire the US wireless operator then known as Sprint Nextel, now Sprint Corp.
The loan will be split between two facilities. Facility A for Y1.1 trillion (US$11bn) matures in 2018, and Facility B for Y880bn (US$9bn) matures in 2020.
Alongside refinancing the Sprint bridge loan Softbank will also use the proceeds to pay off some of its borrowings, and those of recently acquired eAccess.
Mizuho, Sumitomo Mitsui, The Bank of Tokyo-Mitsubishi UFJ, Deutsche Bank and Credit Agricole are the main banks working on the transaction, along with 14 other institutions.
Mizuho, Sumitomo Mitsui, The Bank of Tokyo-Mitsubishi UFJ and Deutsche Bank had already provided loans to Softbank when it agreed the Sprint deal last October.
Softbank completed its acquisition of Sprint, which in turn consolidated Clearwire, in July as it looks to mould Sprint into a more significant player in the US market.
