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SoftBank to Borrow Almost $4 billion Against T-Mobile Stake

  • SoftBank borrowings permitted under Deutsche Telekom swap
  • JPMorgan and Goldman Sachs among lenders to SoftBank
A SoftBank Corp. store in Tokyo.
A SoftBank Corp. store in Tokyo.Photographer: Kiyoshi Ota/Bloomberg

SoftBank Group Corp. will borrow about $4 billion through a pair of margin loans secured by the bulk of its stake in T-Mobile US Inc., according to a regulatory filing. 

The Japanese company, which holds 106.3 million T-Mobile shares, announced earlier this week that it had  agreed to swap about 45 million of those shares for a 4.5% stake in Deutsche Telekom AG. The deal expressly allows SoftBank to borrow against  its T-Mobile stake as long as Deutsche Telekom gets to vote the shares pledged as collateral.