Notice of Change in the Restrictive Financial Covenant on Outstanding Euro-Denominated Straight BondsDec. 28, 2004
SOFTBANK CORP. (the “Company”) announced today that it entered into an agreement to change the restrictive financial covenant on outstanding euro-denominated straight bonds to be matured in 2011 (issued on March 8, 2004, with a total issue amount of 400 million euro) with Deutsche Trustee Company Limited, the trustee of the relevant bonds as of December 28, 2004.
After the issuance of the relevant bonds, the scale of the Company’s group assets and business drastically changed due to such business activities as the acquisition of JAPAN TELECOM CO., LTD. Because the original restrictive financial covenant on the relevant bonds was based on the old scale of assets and business, the Company decided to change it to encourage flexibility in its financial strategy for meeting present conditions and facilitate the implementation of business strategies more smoothly in the future.
As a consequence of the change, the Company expects an extraordinary loss of 29 million euro (Yen equivalent based on an exchange rate, 1 euro = 140.35 yen, as of December 28, 2004: approximately 4.1 billion yen) in the third quarter of the fiscal year ending March 31, 2005, due to a payment of amendment fees to relevant bondholders and other expenses.
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