Refinancing of Acquisition Finance of SprintSeptember 12, 2013
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.|
|(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.
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