Press Release
eAccess Ltd.
(Code Number: 9427)
eMobile secured 350 billion yen capital through equity and debt financing One of Japan's largest
eMobile Ltd.("e;Mobile"), a subsidiary of eAccess Ltd.("e;Access") announced today, that it has secured a total of 350 billion yen through equity and debt financing. The total capital raised is expected to satisfy the funding requirement of its mobile business.
On the equity financing side, eMobile has experienced overwhelming demand from potential domestic and overseas investors. eMobile has completed the equity financing of 28 billion yen through the issuance of new shares. Following this transaction, the total capital shares and capital reserve of eMobile will reach 115.93 billion yen (capital shares: 58.115 billion yen), and eAccess' ownership in eMobile will be 51.4%.
eMobile will complete an additional 14 billion yen equity financing which is scheduled to close in June 2006. After the two rounds of equity financing, eMobile's total capital shares and capital reserve are expected to reach 130 billion yen. eAccess' ownership in eMobile is expected to be around 45~51%.
On the debt financing side, eMobile has secured a commitment line of long-term debt financing facility with 10 major domestic and international banks as the Mandated Lead Arrangers. The total amount of long-term debt facility is 220 billion yen with a maximum term of 7 years. This debt financing is expected to be Japan's largest non recourse project financing for a telecom greenfield operation.
* eMobile's debt financing is non-recourse to eAccess. The total amount of debt is reserved based on the future funding requirement of eMobile's business plan.
[Details of Equity Financing]
1.Details of investors
| Allocation | Total Amount |
|---|---|
| eAccess Ltd. | 6.00 billion yen |
| Mitsui&Co., Ltd | 5.00 billion yen |
| Goldman Sachs Group | 4.93 billion yen |
| Others (Yodobashi Camera Co., Ltd., Kojima Co., Ltd., BicCamera Inc, NIF SMBC Ventures Co., Ltd., JAFCO Co., Ltd., Vision Capital Co., etc) | 12.15 billion yen |
2.Payment date
April 25, 2006 (Scheduled)
3.Principal shareholders after the allocation of new shares
| eAccess Ltd. | 51.4% |
| Goldman Sachs Group (GS eM Holdings I, GS eM Holdings II) | 24.9% |
| Tokyo Broadcasting System, Inc. (TBS) | 7.8% |
| Mitsui&Co., Ltd | 3.5% |
| Others | 12.4% |
4.Details of eMobile Ltd. (As of December 20, 2005)
| (1)Name | : | eMobile Ltd. | ||||||
| (2)Business focus | : | Mobile broadband business | ||||||
| (3)Date of establishment | : | January 5, 2005 | ||||||
| (4)Location | : | Shin Nikko Bldg. 10-1 Toranomon 2-chome, Minato-ku, Tokyo | ||||||
| (5)Representative | : | Representative Director Sachio Semmoto | ||||||
| (6)Capital shares and capital reserve | : | 87.85 billion yen (Capital shares:44.075 billion yen) | ||||||
| (7)Total number of share issued | : | Common shares 1,388,360 (Diluted basis) | ||||||
| (8)Principal shareholders | : |
|
[Details of Debt Financing]
| 1.Total amount and term | |
| Total amount:220 billion yen | |
| Maximum term: 7 years | |
2.Coordinating Agents | |
Mizuho Management Advisory Co., Ltd.JPMorgan Chase Bank, N.A. | |
3.Mandated Lead Arrangers | |
ING Bank N.V. Tokyo Branch | |