JAPAN
DEBT CAPITAL MARKETS
› SOFTBANK EXCHANGES BONDS
SOFTBANK GROUP CORP announced the results of
an exchange offer for some of its dollar and
euro bonds, and said it had decided not to
launch a concurrent new-money issue.
The company accepted for exchange
US$181.479m of its US$1bn 5.375%
2022s; US$288.373m of its US$1bn 6%
2025s; €213.466m of its €500m 4% 2022s;
€560.886m of its €1.25bn 4.75% 2025s; and
€289.380m of its €500m 5.25% 2027s.
In return, SoftBank will issue
US$499.956m of new 6.25% 10-year bonds
and €1.17bn of new 5% 10-year notes,
both maturing on April 15 2028. The
settlement date for the exchange offer is
April 3. Earlier, indicative guidance was for
minimum coupons of 6.000% and 4.625%,
respectively.
The dollar 2022s will exchange at a rate
of US$1,047.50 per outstanding US$1,000
in principal amount and the 2025s at
US$1,075.
The euro 2022s will exchange at a rate of
€1,098.75 per €1,000 in principal amount,
the 2025s at €1,093.75 and the 2027s at
€1,126.25.
The Japanese technology group also said
it had received sufficient consent from
holders to amend certain terms on its dollar
notes due 2022 and 2025, and its euro notes
due 2022, 2025 and 2027.
Holders of 81% of the notes agreed to
amend certain terms to bring them in line
with those on its paper sold in September
- One of the changes to the terms will
allow the group to release the guarantee
on its US dollar bonds due 2025 from
telecom subsidiary SoftBank Corp, which is
earmarked for an IPO.
It will pay US$10 per US1,000 in principal
amount to consenting holders of the dollar
bonds and €10 per €1,000 to holders of the
euro bonds.
Deutsche Bank, Bank of America Merrill Lynch
and Morgan Stanley led the exchange and
consent process.
SYNDICATED LOANS
› EIGHT JOIN TOYOBO HYBRID
A ¥15bn (US$141m) 60-year hybrid loan for
TOYOBO to refinance a hybrid facility of the
same size saw eight lenders come aboard,
the fibre and textile maker said on Tuesday.
Signing took place on the same day.
The eight are Daido Life Insurance,
Development Bank of Japan, Mitsubishi UFJ Lease
& Finance, Mizuho Bank, SMBC, Sumitomo Mitsui
Finance & Leasing, Sumitomo Mitsui Trust Bank
and Tokyo Century.
The loan will be repaid in five years
after drawdown on March 26. The interest
margin will step up by 100bp after five
years. The initial margin was not disclosed.
Japan Credit Rating Agency and Rating
& Investment Information have assigned
ratings of BBB+ and BBB to the loan and
are treating it as 75% and 70% equity,
respectively.
Funds refinance a ¥15bn 60-year hybrid
facility completed in March 2014. Mizuho
was mandated lead arranger on the 2014
loan, while SMBC joined in syndication.› TWO ARRANGE MEGA SOLAR PFTwo Hokkaido-based regional banks have
arranged a ¥11.5bn project financing for
the development of the 31.68MW Akkeshi
mega solar plant.
Hokkaido Bank and North Pacific Bank were
the arrangers, while six others joined in
syndication. Hiroshima Bank came in as co-
arranger, while Daishi Bank, Hokuto Bank,
Iyo Bank, Joyo Bank and Michinoku Bank were
participants.
The PF was signed on March 9, a
statement from Hokkaido Bank said.
The borrowing entity is AKKESHI GREEN
DENRYOKU GK, which was established by
Green Power Development Corp of Japan.
The plant, located in Akkeshi, eastern
Hokkaido, is expected to come on line in
January 2020. Electricity will be sold to
Hokkaido Electric Power.› RENTAL HOUSING WRAPS UP REFITokyo-listed JAPAN RENTAL HOUSING INVESTMENTS
on Monday signed two bullet term loans
totalling ¥17.4bn for refinancing purposes.
MUFG was the arranger and also an agent
on both a ¥3bn seven-year loan, paying an
interest margin of 46.25bp over one-month
Tibor, and a ¥14.4bn borrowing split into
four pieces with tenors ranging from six
to eight years and margins of 43.75bp to
51.25bp over one-month Tibor.
Existing lenders Aozora Bank, Bank of
Fukuoka, Development Bank of Japan, Mizuho
Bank, Nomura Trust & Banking, Resona Bank
and SMBC joined the loan in syndication.
The ¥3bn facility was drawn on March
23, while the ¥14.4bn loan will be drawn
on June 22.
The borrower invests in rental housing
properties across Japan with a focus on
the 23 wards of Tokyo and three main
metropolitan areas.EQUITY CAPITAL MARKETS
› CEO SELLS ¥18BN ZIGEXN BLOCKJoe Hirao, the president and CEO of
Japanese online media company ZIGEXN, has
raised ¥18bn (US$172m) through the sale of
18.4m secondary shares at ¥979.8 apiece.
The shares were priced at a discount
of 8% to the pre-deal close of ¥1,065. The
discount was near the top end of the 5%–9%
indicative range.
Books were covered twice and the top
five investors bought 40% of the deal.
Investors were a mix of international long-
only institutions, hedge funds and existing
shareholders.
After the sell-down, Hirao’s stake in
ZIGExN falls to 49.9% from 66.5%, allowing
the company to enjoy a lower tax rate as a
single stakeholder will own less than 50% of
its shares.
An increase in the free float to 49% from
32.5% will also make ZIGExN eligible for
transfer to the TSE First Section from the
TSE Mothers market.
There is a 180-day lock-up on the issuer
and selling shareholder.
Deutsche Bank and Nomura were joint
bookrunners.› TECHNOPRO SHARES FETCH ¥12.9BNTECHNOPRO HOLDINGS has raised ¥12.9bn
(US$123m) from the sale of 2m primary
shares at ¥6,439 each, according to people
with knowledge of the transaction.
The shares were priced at the top of the
2%–6% discount range.
The Japanese staffing company will use
the proceeds to repay debt and for capital
expenditure.
The shares, representing 5.8% of
the company’s capital, were sold to
international investors. Around 50 accounts
participated and the top 10 got 50% of the
shares.
There is a 90-day lock-up period on the
company.
Nomura and UBS arranged the sale.LAOS
SYNDICATED LOANS
› BCEL LURES 16 LENDERS ON DEBUTState-owned BANQUE POUR LE COMMERCE EXTERIEUR
LAO has allocated to 16 lenders its enlarged
four-year debut term loan of US$150m.
The facility was increased from an