Japanese mobile operator Softbank is reportedly currently raising a US$20bn yen-equivalent loan, in what will be the largest-ever syndicated facility in Asia Pacific.
Bank of Tokyo-Mitsubishi UFJ, Deutsche Bank, Mizuho Corporate Bank and Sumitomo Mitsui…
Japanese mobile operator Softbank is reportedly currently raising a US$20bn yen-equivalent loan, in what will be the largest-ever syndicated facility in Asia Pacific.
Bank of Tokyo-Mitsubishi UFJ, Deutsche Bank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp are arranging the jumbo loan but other Japanese and international banks may join the facility and have until the end of August to do so, according to a Reuters report citing banking sources.
Proceeds will be used to refinance a short-term Y1.65 trillion (US$17.1bn) loan signed in December 2012 and used for the US$21.6bn acquisition of US telco Sprint, which completed in mid-July.
The four lenders working on the US$20bn loan had also arranged the bridge loan, which was previously Asia’s largest syndicated deal. Part of it was converted into bonds after Softbank issued Y370bn (US$3.8bn) notes in February.
The US$20bn loan is split between a five-year and a seven-year tranches and has amortising repayments throughout the loan’s tenure.
Pricing, which is less than 150 bps, is based on a ratings grid, Reuters said.
In mid-July Moody’s downgraded Softbank to Ba1 from Baa3, reflecting the acquisition of Sprint which “will significantly weaken Softbank’s financial flexibility, and the possibility that Softbank will have to extend additional finance to help Sprint execute its large capital expenditure programme of US$16bn for 2013 and 2014”, the ratings agency wrote.
Softbank was not immediately available for comment.
