Toshiba Corp. raised the size of a planned bond sale to 110 billion yen ($1.3 billion) from 80 billion yen, according to a person with knowledge of the matter.
The world’s second-largest maker of flash-memory chips told investors it plans to sell 70 billion yen of five-year bonds on Dec. 9 priced to yield 15 basis points more than the yen swap rate, said the person, asking not to be identified as the information is private.
The Tokyo-based company also plans to sell 25 billion yen of seven-year bonds at a 23 basis-point spread, and 15 billion yen of 10-year notes at a 30 basis-point spread, the person said. Proceeds will repay “loans and maturing commercial paper,” Toshiba spokesman Ken Shinjo said in a telephone interview today, declining to elaborate.
It will be the biggest debt sale by a Japanese manufacturer since Toshiba raised 120 billion yen in January, including 70 billion yen of 1.18 percent, four-year bonds priced at a 50 basis-point spread, according to data compiled by Bloomberg. The company, whose products range from nuclear power plants to semiconductors and home appliances, has 98.5 billion yen of bonds maturing next year, the data show.
Sales of corporate bonds in Japan fell 17 percent to 9.025 trillion yen this year from the same period of 2009, Bloomberg data show, as companies cut spending. Machinery orders, an indicator of capital spending in three to six months, probably fell 0.1 percent in October after dropping 10.3 percent the previous month, according to a Bloomberg News survey of economists before a report due tomorrow.
Nomura Securities Co., Mizuho Securities Co. and Daiwa Securities Capital Markets Co. are helping Toshiba sell the bonds, according to a Nov. 19 e-mailed statement from Nomura.