<article><a href="https://www.dealstreetasia.com/?s=SoftBank Group Corp." target="_blank" rel="noopener">SoftBank Group Corp.</a> bonds jumped after the company offered to buy back its notes, in a small step by billionaire Masayoshi Son’s firm to cut its massive debt pile.</article>

<a href="https://www.dealstreetasia.com/?s=SoftBank Group Corp." target="_blank" rel="noopener">SoftBank Group Corp.</a> bonds jumped after the company offered to buy back its notes, in a small step by billionaire Masayoshi Son’s firm to cut its massive debt pile.
The company said it plans to purchase $750 million worth of outstanding dollar- and euro-denominated notes, and will pay with cash on hand. SoftBank’s 3.125 percent euro bonds due 2025 jumped 1.3 cents to 94.4 cents as of 1:48 p.m. in Tokyo, the sharpest increase since July, and its other securities rose as well, according to Bloomberg-compiled prices.
SoftBank has about 16.6 trillion yen ($152 billion) of total consolidated debt, as Chief Executive Officer Son transforms the company into a giant investment fund. Last month the firm also raised 2.35 trillion yen in an initial public offering of the telecommunications business known as Softbank Corp. to further fuel a tech-focused spending spree that already includes stakes in Uber Technologies Inc. and WeWork Cos.
Here are insights from investors and analysts on the debt buyback:
Takahiro Oashi, a senior fund manager at Asahi Life Asset Management Co.:
This is positive overall for its finances, although the effect is limited by the size of the tender offer. The bond buyback is unlikely to be the start of a trend though “If they have money, they’ll invest it,” Oashi said. “They want to maximize the use of debt. That’s the impression you get from listening to Son.”
Katsuyuki Tokushima, chief fixed-income analyst at NLI Research Institute:
Any step to reduce the interest payments on its huge debt pile is welcome, although this is a small one. “It’s better than nothing.”
Toshiyasu Ohashi, chief credit analyst at Daiwa Securities Co.:
The tender offer will bring down SoftBank’s debt-to-value ratio, which he sees as the major metric for estimates of its creditworthiness, writing in a note to clients Such a move was needed after a decline in its shares reduced its market capitalization If SoftBank can buy the securities below par, that would also be positive from an income-and-expenditure standpointA SoftBank spokesman said that the company will prioritize purchases at under par.
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Bloomberg

The company said it plans to purchase $750 million worth of outstanding dollar- and euro-denominated notes, and will pay with cash on hand.

SoftBank takes small step to reduce debt pile with bond buyback

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SoftBank takes small step to reduce debt pile with bond buyback

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