Softbank to redeem convertible bonds early -Nikkei

TOKYO, March 2 (Reuters) - Japanese mobile phone operator Softbank Corp (9984.T) is expected to redeem 50 billion yen ($512 million) in convertible bonds this month, well ahead of their maturity in 2015, the Nikkei business daily reported on Monday.

The bonds have a call option that all holders appear to have executed by Saturday, the deadline for early redemption at the end of this month, the newspaper said, as investors increasingly prefer cash because of the financial crisis.

The euro-denominated bonds were issued on Dec. 30, 2003 in Europe, and their holders are said to be mainly institutional investors in the region, the Nikkei said.

Softbank will likely use cash on hand to redeem them, as it had cash and deposits of 383.3 billion yen as of Dec. 31 and a free cash flow surplus of more than 100 billion in the first quarter of the year, the Nikkei said.

The early redemption would reduce its interest-bearing debt, which totaled 2.43 trillion yen as of Dec. 31, the newspaper said.

Softbank shares closed at 1,200 yen on Friday, 34 percent below the conversion price of 1,828.1 yen.

The bonds' holders had the choice of redeeming them early at the end of March 2009 or March 2012, the Nikkei said. (Reporting by Yumiko Nishitani)