Japan’s Rakuten talks $500 million two-year senior notes at discount to yield in 12% area

By Paul A. Harris

Portland, Ore., Nov. 21 – Tokyo-based Rakuten Group, Inc. talked its $500 million offering of two-year senior notes (S&P: BB+) to price at a discount and to yield in the 12% area, according to market sources.

Books close Tuesday, and the Rule 144A for life and Regulation S deal is also set to price on Tuesday.

There has been a significant number of indications of interest across Asia, Europe and the United States, according to a source close to the deal.

High-yield accounts in the United States are taking a close look at the Rakuten offering, a New York-based trader said.

Sole physical bookrunner Morgan Stanley will bill and deliver. Goldman Sachs, Daiwa, Mizuho, BofA Securities and Citigroup are joint bookrunners.

The e-commerce and online retail services provider plans to use the proceeds for general corporate purposes, including capital investments for its mobile business and/or for debt repayment.

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