Softbank Corp of Japan has said that it has raised the size of its bond issue. The issue is a US dollars and Euros dual tranche transaction that is now worth US$3.3 billion from just US$2 billion.
The increase was brought about by healthy demand from investors of the bond issue. The bonds have a seven year maturity period where the proceed would be utilized to purchase the current bid for 70% shareholdings in US wireless company Sprint Nextel Corp for the price of US$20.1 billion.
In light of the current bid by Dish Network for Sprint Nextel, the Softbank bid may be in jeopardy as reasons for national security and better customer benefit have been used as reasons for its junking. Despite the previous agreement between Softbank and Sprint, Dish has sought intervention from the Federal Communications Commission for the deal.
According to Softbank, the 4.5% dollar tranche has a current size of US$2.485 billion while the 4.625 euro tranche was at Eur625 million or US$818 million. Both of the tranches were priced at par.
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