Softbank Raises $3.3 Billion With Bond Issue in Dollars, Euros

Softbank Corp., the Japanese telecommunications company vying with Dish Network Corp. to acquire Sprint Nextel Corp., sold $3.3 billion of bonds denominated in dollars and euros after increasing the offering size by more than 50 percent.

The company issued seven-year debt split between $2.49 billion of 4.5 percent notes yielding 339 basis points more than similar-maturity Treasuries and a 625 million-euro ($816 million) portion of 4.625 percent securities yielding 395 basis points more than similar-maturity German government bonds, according to data compiled by Bloomberg.

Part of the proceeds from the sale, which was marketed last week at $2 billion, is intended to be used for the Sprint acquisition, according to a person familiar with the transaction, who asked not to be identified citing lack of authorization to speak publicly. The sale is not contingent on the deal’s settlement.

Should the acquisition fail to close, “there’s a lot of potential uses” for the proceeds, Sajod Moradi, a Philadelphia-based credit analyst at Delaware Investments, said in a telephone interview. “They’re a pretty solid company and they’ll find a good use for that cash.”

Billionaire Masayoshi Son’s Softbank offered in October to buy a 70 percent stake in Sprint Nextel to enter the U.S. market and create the world’s third-biggest mobile-phone services provider. Dish made an unsolicited $25.5 billion cash-and-stock offer for Sprint Nextel on April 15.

The bonds have been rated a provisional Baa3, the lowest level of investment grade, by Moody’s Investors Service, the ratings company said in an April 9 statement.

“There’s still a lot of demand for paper on higher-rated, quality companies out there,” Moradi said. “This is an opportunity for them to diversify their investor base a little bit.”

Deutsche Bank AG served as global coordinator for the offering, the person said.