Press Releases 2017

Refinance of Acquisition Finance of Sprint and Arm

November 2, 2017
SoftBank Group Corp.

SoftBank Group Corp. (“SBG”) announces that today it entered into a senior loan agreement for an amount of JPY 2.65 trillion mainly to refinance the acquisition loan for Sprint Corporation (“Sprint”) in the U.S. and other financings which were executed in September 2013, and the bridge loan for the acquisition of Arm Holdings plc (“Arm”) which was executed in July 2016. SBG also entered into a hybrid loan (the “Hybrid Loan”) agreement for an amount of JPY 84 billion as follows.

Summary of Loan Agreement

Senior Loan Hybrid Loan
1. Borrower SoftBank Group Corp.
2. Mandated Lead Arranger (MLA)
  • Mizuho Bank, Ltd.
  • Sumitomo Mitsui Banking Corporation
  • The Bank of Tokyo-Mitsubishi UFJ, Ltd.
  • Crédit Agricole Corporate and Investment Bank
  • Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
3. Date of Execution November 2, 2017
4. Maximum amount of borrowing JPY 2,650 billion JPY 84 billion
5. Date of loan drawdown November 8, 2017
6. Main use of proceeds
  • Repayment of acquisition loan for Sprint, etc.
  • Repayment of bridge loan for Arm acquisition
  • General corporate purposes
General corporate purposes
7. Maturity September 30, 2024 November 8, 2044
8. Collateral None
9. Guarantee SoftBank Corp. None

The Hybrid Loan is eligible for 50% equity treatment from rating agencies (Japan Credit Rating Agency, Ltd. and Standard & Poor's Financial Services LLC.). It allows SBG an option to defer interest payments and has a longer maturity than senior bonds and loans while its payment priority can be considered as subordinated to senior indebtedness although it will be recorded as a borrowing in SBG's consolidated financial statements.

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