Sony Corporation (6758) Plans To Raise $1.5 Billion From Bond Sale

Posted May 25, 2013

Sony Corporation (TYO:6758) plans to raise 150 billion yen ($1.5 billion) through unsecured straight bonds for Japanese retail investors.  The company plans to use these funds to pay off maturing debts and to invest in technology.  Sony filed a report that says that the bonds have a five-year maturity rate and is priced to yield 0.8% to 1.4% growth over the period.

The terms are going to be set on June 7th before Sony offers the debt to investors between June 10 to June 18.  This is the first time that Sony is targeting individual investors.  This is a similar approach that SoftBank is taking to raise capital as part of a bid to buy out Sprint.  Sony and SoftBank are able to capitalize due to solid exchange rates.  The 150 billion yen amount is the same that Sony raised when selling notes in November 2012.

Other ways that Sony is planning to cut costs and increase capital is by getting out of the Sony Ericsson joint venture and selling off their chemical products division for around $730 million.  Sony is also selling their office in Tokyo for $1.2 billion and New York for $1.1 billion.  They are also divesting their ownership in companies like DeNA for $470 million.  Sony is also laying off around 10,000 people worldwide to cut costs.