SoftBank launches $11 billion bonds to fund OpenAI investment
The notes will replace a $10 billion bridge loan as SoftBank prepares a third OpenAI payment, according to the term sheet.
- On Monday, SoftBank Group Corp launched $10 billion and 1 billion euro-denominated senior unsecured notes, seeking over $11 billion in what would be one of the largest junk bond deals ever to fund its OpenAI investment.
- Proceeds will cancel a previously secured $10 billion bridge loan facility as SoftBank has committed close to $65 billion to OpenAI, making it one of the world's largest investors in the technology pioneer.
- Citigroup and JPMorgan are serving as lead bookrunners for the issuance, which features three dollar-denominated maturity tenors and two euro-denominated tenors, with pricing expected on Thursday, September 24.
- The bonds are expected to settle on September 29, shortly before the third tranche of SoftBank's follow-on investment in OpenAI closes on October 1.
- SoftBank Group could not be reached for comment regarding the transaction, as markets in Japan are closed for a holiday, though the company is actively working to monetize its holdings in the ChatGPT creator.
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The Japanese technology investor plans to issue dollar and euro bonds in the total volume of 11.15 billion dollars (9.73 billion euros), as shown in the key data paper. The papers would have maturitys between three and a half and a half years.
Softbank seeks US$11bn in junk bonds for OpenAI
Softbank Group Corp is seeking the equivalent of more than US$11 billion in what would be one of the biggest junk bond deals ever, people familiar with the matter said yesterday, as billionaire Masayoshi Son’s conglomerate ramps up its investments in ChatGPT, creator OpenAI. The company is looking t
The Japanese technology investor plans to issue dollar and euro bonds in a total volume of 11.15 billion dollars. This is one of the 20 largest bond issues of the year.
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