S (Sprint) Softbank Plans ¥400 Billion Retai
Post# of 29735
Posted On: 05/21/2013 5:48:54 AM
S (Sprint)
Softbank Plans ¥400 Billion Retail Bond Issuance
TOKYO (Nikkei)--Softbank Corp. (9984.TO) is planning yet another record-breaking sale of retail bonds to Japanese investors, seeking to raise around Y400 billion, The Nikkei reported in its Tuesday morning edition.
Coming as early as next month, it will mark the biggest issuance ever conducted by a nonfinancial Japanese company -- a record the telecommunications group itself set in March at Y300 billion.
Including the new sale, Softbank will have raised more than Y1 trillion through debt offerings this year. The proceeds will go toward its bid for third-ranked U.S. mobile phone carrier Sprint Nextel Corp. (S), as well as for redeeming existing bonds.
This time, Softbank is expected to sell five-year debt with a coupon likely in the upper-1% range, assuming market interest rates remain little changed. Daiwa Securities Co. (8601.TO, Nomura Securities Co. and Mizuho Securities Co. are expected to be among the five lead managers.
Softbank aims to wrap up a $20.1 billion acquisition of 70% of Sprint Nextel on July 1. To finance the roughly Y2.05 trillion deal, it secured a bridge loan and in April sold about Y320 billion worth of foreign-currency bonds in U.S. and European markets.
The new Japanese retail bond offering looks to be in line with Softbank's original fundraising plans. While U.S. satellite television provider Dish Network Corp. (DISH) has made a rival offer for Sprint, Softbank President Masayoshi Son said late last month that the company does not need to add to its war chest for the acquisition.
Softbank Plans ¥400 Billion Retail Bond Issuance
TOKYO (Nikkei)--Softbank Corp. (9984.TO) is planning yet another record-breaking sale of retail bonds to Japanese investors, seeking to raise around Y400 billion, The Nikkei reported in its Tuesday morning edition.
Coming as early as next month, it will mark the biggest issuance ever conducted by a nonfinancial Japanese company -- a record the telecommunications group itself set in March at Y300 billion.
Including the new sale, Softbank will have raised more than Y1 trillion through debt offerings this year. The proceeds will go toward its bid for third-ranked U.S. mobile phone carrier Sprint Nextel Corp. (S), as well as for redeeming existing bonds.
This time, Softbank is expected to sell five-year debt with a coupon likely in the upper-1% range, assuming market interest rates remain little changed. Daiwa Securities Co. (8601.TO, Nomura Securities Co. and Mizuho Securities Co. are expected to be among the five lead managers.
Softbank aims to wrap up a $20.1 billion acquisition of 70% of Sprint Nextel on July 1. To finance the roughly Y2.05 trillion deal, it secured a bridge loan and in April sold about Y320 billion worth of foreign-currency bonds in U.S. and European markets.
The new Japanese retail bond offering looks to be in line with Softbank's original fundraising plans. While U.S. satellite television provider Dish Network Corp. (DISH) has made a rival offer for Sprint, Softbank President Masayoshi Son said late last month that the company does not need to add to its war chest for the acquisition.
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