Rakuten talks $1 billion three-year notes at discount, 12½% area yield; pricing Tuesday

By Paul A. Harris

Portland, Ore., Jan. 29 – Rakuten Group, Inc. talked its $1 billion offering of non-callable senior notes due February 2027 (BB) with an original issue discount to yield in the 12½% area, according to a market source.

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

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.