Refinancing of Acquisition Finance of Vodafone K.K. (2)
SOFTBANK CORP. (hereafter “the Company”) announces that today it executed a loan agreement that totals JPY 550.0 billion with 17 financial institutions in Japan and overseas. This is according to “ Refinancing of Acquisition Finance of Vodafone K.K. ” issued on July 1, 2011.
SOFTBANK MOBILE Corp. repaid JPY 369.4 billion on July 27, 2011 and will plan to pay JPY 284.5 billion on October 27, 2011 to pay off the funds it procured associated with the acquisition (acquisition finance), with the funds procured by this loan and its funds in hand.
1. Impact on the consolidated statements of income for the fiscal year ending March 31, 2012
The Company expects to record approximately JPY 23.0 billion as non-operating expenses and approximately JPY 22.0 billion as special loss in the consolidated statements of income for the fiscal year ending March 31, 2012. This includes costs associated with 1) abovementioned loan and 2) the repayment of the acquisition finance (cancel fee for interest hedge and prepayment premium, etc.).
With this refinance the Company expects to significantly reduce its interest burden; however it is difficult to reasonably estimate the reduction amount as of today.
There is no change in the SOFTBANK Group's target of reducing its consolidated net interest-bearing debt as of the end of March 2009 by half over three years (as of the end of March 2012), and to zero over six years (as of the end of March 2015).
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