Japanese telco Softbank has reduced the bridge loan it had taken out to fund its acquisition of a 70% stake in US operator Sprint Nextel by Y365.1bn (US$3.81bn), after raising Y370bn (US$3.96bn) from two bond issues.
In an announcement made to the Tokyo…
Japanese telco Softbank has reduced the bridge loan it had taken out to fund its acquisition of a 70% stake in US operator Sprint Nextel by Y365.1bn (US$3.81bn), after raising Y370bn (US$3.96bn) from two bond issues.
In an announcement made to the Tokyo and Singapore stock exchanges today, the company said that it had reduced its bridge loan from Y1,650bn (US$17.15bn) to Y1,284.9bn (US$13.4bn) after deducting the proceeds from the bond issuance.
“Out of the amount procured, the amount excluding estimated costs associated with the bond issuance of Y365.1bn will be allocated to part of the investment in the business of Sprint,” said the statement.
As TelecomFinance reported last month, Softbank issued a Y300bn (US$3.2bn) bond with a coupon of 1.47% aimed at retail investors and Y70bn (US$760m) notes which carry a coupon of 1.467%, aimed at institutional investors.
Nomura, Daiwa, Mizuho, SMBC Nikko, Mitsubishi UFJ Morgan Stanley and SBI were bookrunners on the Y300bn bond.
Mizuho, SMBC Nikko, Daiwa, Nomura, Mitsubishi UFJ Morgan Stanley and Deutsche Securities underwrote the Y70bn 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. Softbank’s acquisition of Sprint is expected to close in mid-2013.
