Softbank Completes Refinancing Vodafone Loans

TOKYO -(Dow Jones)- Softbank Corp. said Thursday it has completed a Y1.45 trillion (US$12.5 billion) refinancing deal related to its acquisition of the Japanese mobile phone unit of Vodafone Group Plc.

The Japanese Internet and telecom firm, which used bridge loans to finance the purchase, refinanced the deal with new loans collateralized by cash flows generated from the mobile phone operations.

Softbank didn't release the terms of the refinancing and a company spokesman declined to comment on interest rates on the new loans.

"After discussing with banks (involved in the refinancing) and our auditor, we decided not to announce specific interest rates at this stage," he said.

The company may announce pricing details when it releases a semiannual report in mid-December, he added.

The refinancing will knock Y15.9 billion (US$137 million) off its group pretax net profit for the fiscal year through March, in line with its initial projections, Softbank said in a statement.

-By Arran Scott and Nozomi Toyoma, Dow Jones Newswires; 813-5255-2929; arran.scott@dowjones.com
-Edited by Mayuko Ota

(END) Dow Jones Newswires"

Posted to the site on 30th November 2006