---
title: "Whole-company securitisation"
description: "The financing structure that let a BB-rated SoftBank borrow for Vodafone Japan."
canonical: https://tomsharman.com/bookshelf/gambling-man/whole-company-securitisation/
updated: 2026-11-03
---

# Whole-company securitisation

> The financing structure that let a BB-rated SoftBank borrow for Vodafone Japan.

Lionel Barber's framework, from Gambling Man, pp. 148 to 187.

Framework 5 of 8 from [Gambling Man](https://tomsharman.com/bookshelf/gambling-man/index.md) by Lionel Barber. Category: Offers and pricing.

## The steps

1. **Target a BBB rating.** Aim for the rating needed to support a high-yield bond.
2. **Pledge all cash flow to bondholders.** Route every yen of group cash flow to bondholders before any dividend.
3. **Add covenants.** Give the banks many covenants to improve the credit rating.
4. **Show strong projections.** Present cash-flow forecasts for the acquired business to the rating agencies.
5. **Offer a break fee.** Promise a ¥60bn break fee if the deal fails, reversing the usual convention.

## Where it comes from

From chapter: PART THREE: THE OPERATOR, pp. 148–187

## The animation

24 seconds, 4:5, no sound.

- MP4: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/gambling-man/whole-company-securitisation.mp4
- MP4, dark: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/gambling-man/whole-company-securitisation-dark.mp4
- Still: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/gambling-man/whole-company-securitisation.png
- Still, dark: https://tomsharman-downloads-006143767029.s3.eu-north-1.amazonaws.com/downloads/bookshelf/gambling-man/whole-company-securitisation-dark.png