Sony 2015 Annual Report Download - page 175

SONY CORPORATION AND CONSOLIDATED SUBSIDIARIES
Long-term debt is comprised of the following:
Yen in millions
March 31
2015 2016
Unsecured loans, representing obligations principally to banks:
Due 2015 to 2024, with interest rates ranging from 0.29% to 5.10% per annum 425,437
Due 2016 to 2024, with interest rates ranging from 0.27% to 5.47% per annum 237,850
Unsecured 1.57% bonds, due 2015, net of unamortized discount 30,000
Unsecured 1.75% bonds, due 2015, net of unamortized discount 24,999
Unsecured 0.55% bonds, due 2016 10,000 10,000
Unsecured 0.66% bonds, due 2017 45,000 45,000
Unsecured 0.43% bonds, due 2018 10,000 10,000
Unsecured 0.86% bonds, due 2018 150,000 150,000
Unsecured 2.00% bonds, due 2018 16,300 16,300
Unsecured 2.07% bonds, due 2019 50,000 50,000
Unsecured 1.41% bonds, due 2022 10,000 10,000
Unsecured zero coupon convertible bonds, due 2022 120,000
Secured 0.10% loans, due 2016 to 2019 20,000 40,000
Capital lease obligations and other:
Due 2015 to 2025, with interest rates ranging from 0.36% to 8.07% per annum 66,880
Due 2016 to 2024, with interest rates ranging from 0.36% to 9.99% per annum 43,248
Guarantee deposits received 12,988 11,875
871,604 744,273
Less — Portion due within one year 159,517 187,668
712,087 556,605
At March 31, 2016, certain subsidiaries in the Financial Services segment pledged marketable securities and
securities investments with a book value of 44,241 million yen as collateral for 40,000 million yen of long-term
loans.
In March 2012, Sony executed a 1,365 million U.S. dollar unsecured bank loan with a group of lenders
having six to ten year maturity terms in connection with Sony’s acquisition of Ericsson’s 50% equity interest in
Sony Ericsson. This bank loan utilizes the Japan Bank for International Cooperation Facility, which was
established to facilitate overseas mergers and acquisitions by Japanese companies as a countermeasure against
yen appreciation. The terms of this U.S. dollar loan require accelerated repayment of the entire outstanding
balance if Sony Corporation or its wholly-owned subsidiaries discontinue the business of mobile devices
featuring telephone functionality. In March 2016, Sony repaid 682 million U.S. dollars of the 1,365 million
U.S. dollars. As a result, the outstanding balance as of March 31, 2016 was 683 million U.S. dollars.
On July 21, 2015, Sony issued 120,000 million yen of 130% callable unsecured zero coupon convertible
bonds with stock acquisition rights due 2022 (the “Zero Coupon Convertible Bonds”). The bondholders are
entitled to stock acquisition rights effective from September 1, 2015 to September 28, 2022. The initial
conversion price is 5,008 yen per common share. In addition to the standard anti-dilution provisions, the
conversion price is reduced for a certain period before an early redemption triggered upon the occurrence of
certain corporate events including a merger, corporate split and delisting event. The reduced amount of the
conversion price will be determined by a formula that is based on the effective date of the reduction and Sony’s
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