SoftBank takes in $ 4 billion loan to secure a stake in the US telecommunications giant

SoftBank Group Corp. plans to take in he lends about $ 4 billion through a couple of margin loans that secure the bulk of his stake in T-Mobile US Inc, according to a regulatory filing.

The Japanese company, which owns 106.3 million shares of T-Mobile, announced earlier this week that it has agreed to … Trade around 45 million of these shares for 4.5% of the shares of Deutsche Telekom AG.

The agreement explicitly allows SoftBank to take in loan his stake in T-Mobile provided that Deutsche Telekom obtains one vote on the shares pledged as collateral.

A SoftBank subsidiary called Project 6 LLC will receive a $ 2.6 billion margin loan partially secured by approximately 43 million shares of T-Mobile and a second $ 1.25 billion bridging loan backed by an additional 45.4 million. shares of T-Mobile, according to the program presented to the Securities Commission, the financial exchanges and the American exchanges.

The company said in the filing that “SoftBank will fully withdraw the two loans on September 15,” Bloomberg reported.

The margin loan expired in July 2024, while the bridging loan expired within two months, i.e. November 14. The lending group includes JPMorgan and Goldman Sachs Group.

The deal with Deutsche Telekom has rekindled hopes among SoftBank shareholders that the company, founded by Masayoshi Son, will undertake another share buyback. Masa Son divested some of SoftBank’s holdings in T-Mobile last year in a $ 21 billion deal that helped pay for a buyback record of the shares of his company.

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