SoftBank weighs up to $20 bln bond sale to refinance OpenAI loan - Bloomberg

SoftBank Group is reportedly discussing the possibility of a bond sale ranging from $10 billion to $20 billion to refinance a loan associated with its investment in OpenAI, according to Bloomberg News. The offering, which could be conducted in either dollars or euros, might commence as early as September, although specifics regarding size, timing, and structure are yet to be determined.

SoftBank has been in talks with investment banks about various refinancing options for a bridge loan secured earlier this year for its OpenAI investment. Part of the funds raised from the bond sale could be used to repay a $40 billion bridge loan, Bloomberg reported. The company is projected to invest nearly $65 billion in OpenAI by October, with a portion of the investment coming from borrowings.

This potential bond sale would be SoftBank's second offshore bond issuance this year and its largest if it reaches the $20 billion mark. Additionally, SoftBank is exploring the possibility of a 144A offering, which would allow broader access to U.S. institutional investors. SoftBank's bond sale in April included a $3.6 billion dollar- and euro-denominated issue, featuring a 10-year tranche with an 8.5% coupon.

As of 05:16 GMT on Wednesday, SoftBank shares were trading 2.8% higher at 5,228.00 yen on the Tokyo Stock Exchange.