Press Releases 2013

Refinancing of Acquisition Finance of Sprint

September 12, 2013
SoftBank Corp.

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.

[Note]
  • *Renamed to Sprint Communications, Inc. in July 2013.

1. Summary of the loan agreement

(1) Borrower SoftBank Corp.
(2) Lenders
  • Mizuho Bank, Ltd.
  • Sumitomo Mitsui Banking Corporation
  • The Bank of Tokyo-Mitsubishi UFJ, Ltd.
  • Deutsche Bank AG
  • Crédit Agricole CIB
  • and others. In total 19 institutions
(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)
  1. JPY 1.85 trillion on September 27, 2013
  2. JPY 0.13 trillion between the end of September 2013 and the end of December 2013
(6) Primary use of loan proceeds
  • Repayment of bridge loan for Sprint acquisition
  • Repayment of some existing borrowings at the Company
  • Repayment of some existing debts at eAccess Ltd.
(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.


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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.
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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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