Sony to raise $1.5 billion from sale of bonds to reinvest into research and pay off debts
This month Sony reported their first positive figures since 2008. Now the Japanese-based Corporation is looking to sell about $1.5 billion (U.S.) in bonds to pay off maturing debts and reinvest back into their research and development.
At one time Sony was the leader in high-end electronic sales but that soon faded with heavy competition from other companies such as Apple, Samsung and even some recent newcomers to the market. Now the company is seeing some positive gains after nearly five years time, and they are looking to raise more money by selling bonds to investors.
In all, Sony is looking to raise 1.5 billion by selling bonds and reinvest that money back into their research and development to play catch-up with other electronic firms. According to a recent report by Bloomberg, the bonds, with their five-year maturity rate, were rated to yield 0.8% to 1.4% growth.
The bonds for the corporation will be issued on June 19, 2013, and this sale will mark the first time the company has targeted regular investors and not other companies.
Sony has been undertaking a new type of restructuring plan that is streamlining the company to make them vastly more competitive with worldwide competition. These changes have been directly attributed to Kazuo Hirai, who took over as the company's chief executive officer last year. Before becoming CEO Hirai was noted to have a good eye for change and was quite instrumental with making the success of the Sony PlayStation in the U.S. as well.
Hirai announced last week that Sony would continue to focus on making a new image for their products, smartphones and their gaming system to recoup their losses in electronic sales.
Thus far, Sony has cut thousands of jobs around the globe and sold off a lot of their unwanted or un-needed assets. Even as Sony’s main electronic business is still seeing relatively poor sales, Japan’s top TV maker saw their first profit in nearly five years time. Nevertheless, even with all of these changes along with an aggressive CEO, most investment firms do not see a positive outlook for Sony. Standard and Poor has the company rated at BBB, which is only two levels above junk along with a negative outlook for the company overall for investors.