SoftBank to Raise 300 Billion Yen Via Sale of Bonds

SoftBank Corp. (9984), the Japanese wireless carrier run by billionaire Masayoshi Son, will raise 300 billion yen ($2.9 billion) via a sale of bonds to repay past debt and make investments.

The company will offer five-year notes to individual investors, it said in a filing today to the Ministry of Finance. The price of the issue will be decided on May 16, and there will be nine underwriters including Nomura Securities Co. and Daiwa Securities Co., according to the filing.

“The bond issuance is aimed at increasing our cash reserves so that we will be able to move swiftly when we make an investment in the future,” Hiroe Kotera, a spokeswoman for SoftBank in Tokyo, said by phone. “We don’t have a specific target for investment at this point.”

SoftBank purchased Sprint Corp. for $22 billion last year and is considering a bid for T-Mobile US Inc. The Tokyo-based company sold 820 billion yen in domestic bonds last year, equal to almost 10 percent of all corporates offered in the Japanese market during the period, data compiled by Bloomberg show.

SoftBank offered 400 billion yen of five-year notes to individual investors with a coupon of 1.74 percent in June 2013. Maturing next month are 30 billion yen of 0.65 percent three-year notes and 14.9 billion yen of 4.36 percent seven-year securities, Bloomberg-compiled data show.

Sprint, which is 80 percent owned by Son’s company, plans to push forward with a bid for T-Mobile US Inc. after meeting with banks last month to make debt arrangements for that offer, people with knowledge of the situation said.

To contact the reporters on this story: Taku Kato in Tokyo at tkato6@bloomberg.net; Takashi Amano in Tokyo at tamano6@bloomberg.net

To contact the editors responsible for this story: Katrina Nicholas at knicholas2@bloomberg.net Ken McCallum, Aaron Clark

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