In an unusual move, Softbank also plans to securitize the revenue stream from its broadband connections. Son said Softbank could raise 19 billion yen in June, when the company hopes to issue securities backed by the fee income from about 600,000 of its subscribers. By raising money this way, Softbank hopes to reduce its reliance on bank loans and stock sales.
Softbank also needs money to pay off its heavy debt. The company had Japanese Yen 341 billion (US$2.9 billion) in liabilities at the end of March, 6.8 percent less than the previous year. Moody's Investors Service rates the company's bonds below investment grade at B1 with a negative outlook.
Softbank's shares, which briefly traded above Japanese Yen 60,000 apiece at the height of the technology stock bubble in early 2000 and fell as low as Japanese Yen 830 last November, gained 1.3 percent Friday, to close at Japanese Yen 1,631 (USUS$13.89).
RSS