Softbank Corp, in its bid to takeover Sprint Nextel Corp, is now planning to sell off 400 billion yen or US$3.9 billion worth of bonds to individual investors in order to fund its US$20.1 billion deal.
The company would be pricing its five year notes between 1.25% and 2,25% on June 3. This was confirmed with the firm's documentary filings with the Japanese Finance Ministry. The bonds would be made available to the public between June 4 to 19.
This is the largest bond offer by Softbank according to Bloomberg compiled data, as the bank had previously raised US$6.9 billion since the planned takeover of the US wireless firm was announced last October.
Softbank would utilize the proceeds from the latest bond sale to pay for the Sprint Nextel bid offer as well as payment for maturing debt, according to Takeaki Nukii, Softbank's Tokyo-based spokesman during a telephone interview. He declined to provide a breakdown as to the amounts.
The bond offer would be managed by nine brokerages including Nomura Holdings Inc and Daiwa Securities.
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