SoftBank's $6.75 billion equivalent eight-part bond offering could price Wednesday; details emerge

By Paul A. Harris

Portland, Ore., June 30 – More details surfaced Wednesday morning on SoftBank Group Corp.’s bond megadeal, according to market sources.

The deal, with an overall size of $6.75 billion equivalent, features four dollar-denominated tranches and four euro-denominated tranches of senior notes (S&P: BB+).

The tranches include

• An expected $750 million tranche of 3.5-year notes talked at 3 1/8%, versus earlier guidance in the 3½% area;

• An expected $750 million tranche of five-year notes talked at 4%, versus earlier guidance in the 4¼% area;

• An expected $750 million tranche of seven-year notes talked at 4 5/8%, versus earlier guidance in the 4 7/8% area;

• An expected $1.25 billion tranche of 10-year notes talked at 5¼%, versus earlier guidance in the 5½% area;

• An expected €750 million tranche of three-year notes talked at 2 1/8%, versus earlier talk in the 2 3/8% area;

• An expected €750 million tranche of 5.5-year notes talked at 2 7/8%, versus earlier guidance in the 3 1/8% area;

• An expected €750 million tranche of eight-year notes talked at 3 3/8%, versus earlier guidance in the 3 5/8% area; and

• An expected €750 million tranche of 11-year notes talked at 3 7/8%, versus earlier talk in the 4 1/8% area.

Earlier in the week the deal was heard to be on a timeline that would have it pricing during the July 5 week. However, SoftBank's notes offering is now expected to come well ahead of that timeline, with some sources expecting it to price as soon as Wednesday.

Deutsche Bank, Barclays and HSBC are the global coordinators.

BofA, JPMorgan and Nomura are active bookrunners.

Mizuho, Credit Agricole, Citigroup, Goldman Sachs and ING are the passive bookrunners.

Deutsche Bank will bill and deliver.

The Tokyo-based conglomerate plans to use the proceeds to repay debt.

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