Sony raises $2.24b in its biggest bond sale
Wednesday, 10 June 2009
TOKYO, June 9 (Bloomberg): Sony Corp., forecasting its first back-to-back net losses as a public company, raised $2.24 billion (220 billion yen) through the biggest bond sale in its history.
The company sold 110 billion yen of 5-year notes paying an interest rate of 1.298 per cent, 60 billion yen of 3-year, 0.945 per cent notes and 50 billion yen in 10-year, 2.068 per cent bonds, Tokyo-based Sony said today in a statement on its Web site.
The maker of Bravia televisions and Cyber-shot cameras will use the proceeds to repay existing debt as slumping demand leads to Sony's first consecutive annual losses since its 1958 stock listing. The offering adds to 5.2 trillion yen in Japanese corporate bond sales in 2009, the highest level year-to-date in at least a decade, according to data compiled by Bloomberg.
Sony, which generates more than three-quarters of its sales abroad, fell 0.9 per cent to 2,685 yen at the close on the Tokyo Stock Exchange, paring this year's gain to 40 per cent. That's twice the increase this year at Panasonic Corp., Sony's biggest domestic competitor, and four times the advance in Japan's benchmark Nikkei 225 Stock Average.
Sony Chief Executive Officer Howard Stringer is cutting 16,000 jobs and shutting factories to cope with the global recession. The company had its first loss in 14 years in the latest fiscal period and forecast another deficit this year as it cuts prices to revive demand for TVs and digital cameras.
Panasonic raised 400 billion yen in bonds in March, as slumping prices and demand led to the company's biggest net loss in six years. Global sales of liquid-crystal-display TVs will fall this year in the industry's first annual decline, researcher DisplaySearch LLC has said.
The company sold 110 billion yen of 5-year notes paying an interest rate of 1.298 per cent, 60 billion yen of 3-year, 0.945 per cent notes and 50 billion yen in 10-year, 2.068 per cent bonds, Tokyo-based Sony said today in a statement on its Web site.
The maker of Bravia televisions and Cyber-shot cameras will use the proceeds to repay existing debt as slumping demand leads to Sony's first consecutive annual losses since its 1958 stock listing. The offering adds to 5.2 trillion yen in Japanese corporate bond sales in 2009, the highest level year-to-date in at least a decade, according to data compiled by Bloomberg.
Sony, which generates more than three-quarters of its sales abroad, fell 0.9 per cent to 2,685 yen at the close on the Tokyo Stock Exchange, paring this year's gain to 40 per cent. That's twice the increase this year at Panasonic Corp., Sony's biggest domestic competitor, and four times the advance in Japan's benchmark Nikkei 225 Stock Average.
Sony Chief Executive Officer Howard Stringer is cutting 16,000 jobs and shutting factories to cope with the global recession. The company had its first loss in 14 years in the latest fiscal period and forecast another deficit this year as it cuts prices to revive demand for TVs and digital cameras.
Panasonic raised 400 billion yen in bonds in March, as slumping prices and demand led to the company's biggest net loss in six years. Global sales of liquid-crystal-display TVs will fall this year in the industry's first annual decline, researcher DisplaySearch LLC has said.