New Sprint Owner Gets $20 Billion in Financing and 2 Other Hot Stocks to Watch
Sprint Nextel Corp. (NYSE:S): Current price $6.71
A Tokyo Stock Exchange statement indicates that SoftBank Corp. will sign a loan agreement for up to $20 billion with 19 banks Friday to help refinance debt from its acquisition of Sprint Corp. Knowledgeable sources say that the financing will help Japan’s third-largest mobile carrier lower its borrowing costs. SoftBank will pay a margin of some 110 basis points more than the one-month Tokyo interbank offered rate on a five-year portion of the debt, and around 140 basis points more for a seven-year part, according to the sources. In the fiscal year ended March 2011, the corporation paid an average 5.14 percent for long-term debt.