Rakuten Group starts roadshow for $1 billion three-year notes; pricing Jan. 29 week

By Paul A. Harris

Portland, Ore., Jan. 25 – Rakuten Group, Inc. began marketing a $1 billion offering of non-callable senior notes due February 2027 on Thursday, according to a market source.

The deal, which was set to kick off on a Thursday morning call with investors, is expected to price during the Jan. 29 week.

Initial guidance has the Rule 144A and Regulation S for life notes coming at a discount to yield in the 12% area, a trader said.

Goldman Sachs is the lead left physical bookrunner. Morgan Stanley, Daiwa, Mizuho, SMBC Nikko, BofA, Citigroup and Nomura are the joint bookrunners.

The Tokyo-based technology conglomerate plans to use the proceeds plus cash on hand to fund concurrent offers to repurchase up to $1 billion of its outstanding securities, including $950 million of senior notes that mature Nov. 30, 2024, with no upper limit, and up to $100 million of its $800 million senior notes that mature Nov. 27, 2024.

The company intends to make further offers to purchase certain of its Japanese-yen denominated notes. Those offers could be funded with any proceeds remaining from repurchases of the dollar-denominated notes.

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