SoftBank Launches $10 Billion Bond Sale to Fund OpenAI Investment
SoftBank Group has launched $10 billion in dollar-denominated bonds and 1 billion euros in senior unsecured notes to help fund its investment in OpenAI.
Bond offering spans several maturities
The dollar-denominated notes come in three maturities: 3-1/2 years, 5-1/2 years and 7-1/2 years. Meanwhile, the euro-denominated bonds come with 4-year and 6-year maturities.
SoftBank plans to use the proceeds mainly for a $10 billion payment tied to its follow-on investment in OpenAI. The third tranche of that investment is expected to close on October 1.
Additionally, the company may use some of the proceeds for general corporate purposes.
Bonds will replace bridge financing
SoftBank had previously secured a $10 billion bridge loan facility to finance its OpenAI investment. However, the new bond financing will replace that facility.
The bond offerings are expected to price on September 24. Subsequently, settlement is scheduled for September 29.
Citigroup and JPMorgan are serving as lead bookrunners for the notes.
Meanwhile, SoftBank Group was not immediately available for comment because September 21 was a holiday in Japan.
