New Senior Loan Agreement by SoftBank Corp. and Partial Payment of Senior Loan before Maturity by SoftBank Group Corp.
SoftBank Group Corp. (“SBG”) announces today that SoftBank Corp. (“SoftBank”), a subsidiary of SBG, has entered into a senior loan (the “Senior Loan”) agreement for the amount of JPY 1,600 billion. SoftBank will use the proceeds from the Senior Loan to repay the outstanding JPY 1,600 billion borrowed from SBG, resulting in dissolution of the debtor-creditor relationship between SBG and SoftBank.
On the same day as SoftBank's drawdown of the Senior Loan, SBG will use all of the proceeds from SoftBank's repayment of its borrowing from SBG to partially repay its Senior Loan dated November 2, 2017 and under which an amount of JPY 2,542.3 billion was outstanding as of June 30, 2018. This transaction will not affect the outstanding amount of the interest-bearing debt on the consolidated financial statements of SBG.
The repayment of SoftBank's loan from SBG will be undertaken as part of SoftBank's efforts to secure its managerial independence from SBG in connection with the preparation to list SoftBank's shares.
Summary of Senior Loan Agreement
| 1. Borrower | SoftBank Corp. |
|---|---|
| 2. Mandated Lead Arranger (MLA) |
Mizuho Bank, Ltd. Sumitomo Mitsui Banking Corporation MUFG Bank, Ltd. Crédit Agricole Corporate and Investment Bank Sumitomo Mitsui Trust Bank, Limited |
| 3. Date of execution | August 23, 2018 |
| 4. Amount of borrowing | JPY 1,600 billion |
| 5. Date of loan drawdown | August 31, 2018 |
| 6. Use of proceeds | Repayment of JPY 1,600 billion loan from SBG |
| 7. Maturity | The last business day of September, 2024 |
| 8. Collateral | None |
| 9. Guarantee | None |
This press release was prepared for informational purposes only and not for the purpose of soliciting any investment in Japan or abroad. It does not constitute an offer of securities in the United States. The SoftBank Corp. shares referred to above have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration thereunder or an applicable exemption from registration requirements.
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