SoftBank Group Plans To Raise $3.7B From 2021's Second Yen Denominated Debt Offering: Bloomberg

  • SoftBank Group Corp SFTBF SFTBY is planning to raise $3.7 billion (405 billion yen) from a second yen-denominated bond offering in 2021 after its quarterly earnings beat, Bloomberg reports.
  • The offering proceeds will be utilized for debt refinancing.
  • The notes are estimated to be rated BBB by Japan Credit Rating Agency Ltd, priced between the range of 2.45% - 3.05% in June with a maturity period of 35 years and callable after five years.
  • SoftBank expects that the notes be treated as 50% equity from rating firms JCR and S&P Global Ratings. The notes include optional interest payment deferral provision, subordinated payment priority to senior debt, and a step-up-interest provision.
  • SoftBank’s Coupang Inc CPNG investment majorly contributed to a net income of 1.93 trillion yen during the March quarter.
  • SoftBank’s Vision Fund investment arm drove recent profits after being the source of its biggest loss a year ago.
  • SoftBank had long depended on Japanese individual investors for most of its bond market yen funding, capitalizing on its strong brand recognition.
  • SoftBank paid a 3% interest to certain bondholders compared to the average investment-grade yen corporate debt yield of less than 0.4%.
  • SoftBank priced 177 billion yen of notes in an institutional debt offering in January.
  • Price action: SFTBF shares traded lower by 3.49% at $77.65 on the last check Wednesday.
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