Refinancing of Acquisition Finance of Sprint
SoftBank Corp. (the “Company”) announced that today its Board of Directors resolved to approve entering into a loan agreement to refinance its bridge loan for the acquisition of Sprint Nextel Corporation* (“Sprint”) in the U.S., and existing borrowings.
- * Renamed to Sprint Communications, Inc. in July 2013.
1. Summary of the loan agreement
| (1) Borrower | SoftBank Corp. | ||
|---|---|---|---|
| (2) Lenders |
| ||
| (3) Date of contract (tentative) | September 13, 2013 | ||
| (4) Maximum total amount of borrowing | JPY 1.98 trillion | ||
| (Breakdown) | Facility A | JPY 1.1 trillion | |
| Facility B | JPY 0.88 trillion | ||
| (5) Loan drawdown amount and date (tentative) |
| ||
| (6) Primary use of loan proceeds |
| ||
| (7) Maturity | Facility A | September 13, 2018 | |
| Facility B | September 14, 2020 | ||
| (8) Collateral | Not applicable | ||
| (9) Guarantors | SoftBank Mobile Corp. and SoftBank Telecom Corp. | ||
2. Impact on the financial results for the fiscal year ending March 2014
The costs associated with the abovementioned loan arrangement are estimated at approximately JPY 34.0 billion. The Company expects to record the full amount of the costs as non-operating expenses on its statement of income on a stand-alone basis under Japanese GAAP for the fiscal year ending March 31, 2014. Meanwhile, approximately JPY 3.0 billion is to be recorded as finance cost on its consolidated statement of income under IFRS for the same fiscal year as such costs will be amortized over the term of the loan.
Disclaimer
This material was prepared based on information available and views held at the time it was made. Statements in this material that are not historical facts, including, without limitation, plans, forecasts and strategies are “forward-looking statements”.
Forward-looking statements are by their nature subject to various risks and uncertainties, including, without limitation, a decline in general economic conditions, general market conditions, technological developments, changes in customer demand for products and services, increased competition, risks associated with international operations, and other important factors, each of which may cause actual results and future developments to differ materially from those expressed or implied in any forward-looking statement.
With the passage of time, information in this material (including, without limitation, forward-looking statements) could be superseded or cease to be accurate. SoftBank Corp. (“SoftBank”) disclaims any obligation or responsibility to update, revise or supplement any forward-looking statement or other information in any material or generally to any extent, except as required by law. Use of or reliance on the information in this material is at your own risk. Information contained herein regarding companies other than SoftBank and other companies of the SoftBank Group is quoted from public sources and others. SoftBank has neither verified nor is responsible for the accuracy of such information.
Any statements made herein regarding Sprint Corporation or Sprint Communications, Inc. (together, “Sprint”) are made by SoftBank solely in its capacity as an investor in Sprint. None of such statements are made on behalf of or attributable to Sprint. Any information contained herein regarding Sprint is subject to any and all subsequent disclosures made by Sprint on its own behalf. Neither Sprint nor SoftBank undertakes any obligation to update the information contained herein in connection with any subsequent disclosures made by Sprint, or to reflect any other subsequent circumstances or events. Nothing contained herein may be construed as an obligation on the part of Sprint to provide disclosures or guidance on its own behalf.
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