SoftBank Taps 19 Banks for $20 Billion Loan to Pay for Sprint Deal
To fund its recent acquisition of Sprint Communications , as well as consolidate other debt, Japanese-based telecom giant SoftBank (NasdaqOTH: SFTBF) will contract with 19 banks to secure a total of $20 billion in loans, Softbank announced today.
The $20 billion will consist of two facilities. The first (A) will total approximately $11 billion, and the second (B) $9 billion. Facility A will mature Sept. 13, 2018, and facility B will come due Sept. 14, 2020.
Softbank also said it intends to draw an estimated $18.6 billion on Sept. 27, 2013, with the balance of the loans utilized "between the end of September 2013 and the end of December 2013."
The company expects costs associated with the loans will equal approximately $340 million, and intends to record the expenses in full by the end of its fiscal year on March 31, 2014.
The 19 institutions include Mizuho Bank, Ltd.; Sumitomo Mitsui Banking Corporation; The Bank of Tokyo-Mitsubishi UFJ, Ltd.; Deutsche Bank AG; and Crédit Agricole CIB.
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