Softbank launches over US$10bil in bonds for OpenAI investment
HONG KONG: SoftBank Group Corp has launched US$10 billion and 1.0 billion euro-denominated senior unsecured notes to fund its investment in OpenAI, a term sheet showed on Monday.
SoftBank Group Corp has issued US$10 billion and 1.0 billion euro-denominated senior unsecured notes to finance its investment in OpenAI, according to a term sheet released on Monday. The dollar-denominated notes come in three different maturities: 3-1/2 years, 5-1/2 years, and 7-1/2 years. Conversely, the euro-denominated bonds have maturities of 4 years and 6 years.
Proceeds from the bond issuance will be utilized to cover SoftBank's US$10 billion payment for the third tranche of its investment in OpenAI, which is slated to close on October 1, as well as for general corporate activities, stated the term sheet. Earlier, SoftBank had obtained a US$10 billion bridge loan facility to support its OpenAI investment, and the bonds will effectively extinguish this loan, as per the term sheet.
The bond offerings are anticipated to be priced on September 24 and settle on September 29, the term sheet added. SoftBank Group was unable to provide immediate comment as it was a public holiday in Japan. Citigroup and JPMorgan are the lead bookrunners for the notes, the term sheet reported.
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