SoftBank entered into a senior loan agreement in the amount of ¥1.6 trillion ($14.361 billion). The loan will mature in September 2024.
MUFG Bank, Mizuho Bank, Sumitomo Mitsui Banking Corp, Crédit Agricole Corporate and Investment Bank and Sumitomo Mitsui Trust Bank acted as lead arrangers on the transaction.
SoftBank will use the proceeds of the loan to repay the outstanding ¥1.6 trillion ($14.361 billion) borrowed from its parent company, SBG, resulting in the dissolution of the debtor-creditor relationship between SBG and SoftBank.
SoftBank plans to drawdown its new loan on August 31, 2018. On that same day, SBG will use all of the proceeds from the repayment to partially repay its ¥2.5423 trillion ($22.817 billion) senior loan dated November 2, 2017 and under which an amount of was outstanding as of June 30, 2018.
The transaction will not affect the outstanding amount of the interest-bearing debt on the consolidated financial statements of SBG.
The repayment of SoftBank’s loan from SBG will be undertaken as part of SoftBank’s efforts to secure its managerial independence from SBG in connection with the preparation to list SoftBank’s shares.