Japanese telecommunications company Softbank Corp. (SFTBF) is planning to raise around 400 billion yen or $3.9 billion from the sale of retail bonds to Japanese investors, the Nikkei business daily reported Monday. The sale could come as early as June.
According to the Nikkei report, Softbank will have raised more than 1 trillion yen through debt offerings in 2013, including the new sale. The company will reportedly use proceeds from the sale toward its bid for U.S. telecom services provider Sprint Nextel Corp. (S), in addition to redeeming existing bonds. Softbank is Japan's third-largest mobile carrier.
The Nikkei reported that Softbank is expected to sell five-year debt with a coupon likely in the upper 1 percent range, assuming market interest rates remain little changed. Daiwa Securities Co., Nomura Securities Co. and Mizuho Securities Co. are expected to be among the five lead managers.
In October 2012, Softbank agreed to acquire a 70 percent stake in Sprint Nextel for about $20.1 billion or nearly 1.57 trillion yen. It was agreed that following the deal, Softbank will own about 70 percent of the fully-diluted shares of New Sprint, which will own 100 percent of the shares of Sprint.
As part of the deal, Softbank is to pay around $12.1 billion to Sprint shareholders and to invest $8 billion of new capital for various purposes, including strengthening of Sprint's balance sheet. Softbank, which had acquired the Japanese unit of British telecom giant Vodafone Group plc (VOD, VOD.L) in 2006, expects the acquisition of Sprint would help it to expand its footprint outside Japan.
But, Sprint said in mid-April that it will also evaluate an unsolicited $25.5 billion takeover bid it received from satellite television provider Dish Network Corp. (DISH).
Sprint said Monday that it has received waiver from Softbank on certain provisions of their merger deal, enabling Sprint to engage in talks with Dish on its takeover proposal made in April and also provide that company access to non-public information for diligence purposes.
SFTBF closed Monday's trading at $59.06, up $1.66 or 2.89 percent on a volume of 4,998 shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.