Sony Issues $2.24 Billion Bond Sale
June 9, 2009
TOKYO: Sony announced the terms of what’s being described as its biggest-ever bond sale. The company laid out the particulars for issues totaling 220 billion yen or $2.24 billion U.S. An issue of 60 billion yen ($610 million) in three-year notes will carry a 0.945 interest rate; another of 110 billion yen ($1.1 billion) in five-year notes will earn 1.298 percent interest; and a third, 50 billion ($500 million) offering in 10-year notes will carry an interest rate of 2.068 percent.
The sale was described as the company’s largest by Bloomberg, which said Sony would use the proceeds to pay down existing debt. Sony reported its first loss in 14 years for the recently completed fiscal period. Moody’s rated the bonds A3; Standard & Poor’s, A-; and Rating and Investment Information Inc. gave them an AA-.
Bloomberg said Sony initially planned a sale totaling 100 billion yen, but that improved debt-capital markets motivated the company to replace its short-term debt with commercial bonds. American Deposit Receipts of Sony (NYSE: SNE) were trading at around $27.80 near mid-afternoon today, up from a dip to $27.09 on Monday on a wider-market stall. -- Deborah D. McAdams