Rakuten ups offering of three-year notes to $1.75 billion, tightens yield talk to 12¼% area

By Paul A. Harris

Portland, Ore., Jan. 29 – Rakuten Group, Inc. upsized its offering of non-callable senior notes due February 2027 (BB) to $1.75 billion from $1 billion on Monday, according to a syndicate source.

Yield talk tightened to the 12¼% area from the 12½% area. The notes will be sold at a discount.

Books were scheduled to 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.

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