Softbank signs USD19.8bn loan facility

13 Sep 2013

Softbank Corp has entered into a loan agreement with a number of banks for JPY1.98 trillion (USD19.81 billion) to refinance its previous one-year bridge loan for the acquisition of US-based telecoms operator Sprint Nextel and settle existing debts and borrowings. According to a company press release, the loan was provided by 19 banks, including Mizuho Bank, Sumitomo Mitsui Banking Corporation, the Bank of Tokyo-Mitsubishi UFJ, Deutsche Bank AG and Credit Agricole CIB, while Softbank Mobile and Softbank Telecom Corp will act as guarantors. The loan has to be repaid in two instalments, with the first repayment ¬¬- worth JPY1.1 trillion – due on 13 September 2018, while the second part of the loan is to be squared by 14 September 2020.

As previously reported by TeleGeography’s CommsUpdate, in August 2013 Softbank Corp announced that it was in the process of raising a USD20 billion loan to refinance a previous facility worth JPY1.65 trillion. The original bridge loan, taken in December 2012 to back Softbank’s acquisition of Sprint, was subsequently reduced to JPY1.285 trillion after Softbank raised JPY370 billion in bonds to cover its investment.

Japan, SoftBank Corp, SoftBank Group Corp