Bankers Find New Reasons to Keep Lending to SoftBank

With more than $140 billion in debt and a junk-level credit rating, SoftBank Group Corp. might not look like an obvious candidate for more borrowing. Yet bankers say they are still eager to lend to the world’s largest technology investor, The Wall Street Journal reported. One reason is the big fees a relationship with SoftBank can bring in—especially the hundreds of millions of dollars in investment-banking fees generated each year by Chief Executive Masayoshi Son’s constant stream of deals. Another is a shift in strategy over the past several years culminating in a change in SoftBank’s corporate structure last year that has allowed both banks and credit-rating firms to view it as an investment holding company rather than as a mobile-phone operator. The trouble is some of those investments can be extremely volatile. Read more

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