SoftBank takes orders for US$10bil in bonds to fund OpenAI investment
The Japanese conglomerate is aiming to raise US$1 billion in a 3-1/2-year bond, US$4.5 billion in a 5-1/2-year bond and US$4.5 billion in a 7-1/2-year bond deal.
SoftBank Group Corp is seeking investor orders for a $10 billion high-yield bond deal to fund its investments in OpenAI, according to a term sheet reviewed by Reuters. The Japanese conglomerate plans to raise $1 billion in a 3.5-year bond, $4.5 billion in a 5.5-year bond, and $4.5 billion in a 7.5-year bond. Potential investors have been provided with price guidance for each bond, ranging from 8.75% to 9.875%.
If successful, this deal would set a new record for the largest high-yield bond sale by an Asia-Pacific or Japanese issuer, surpassing SoftBank's previous $7.35 billion bond deal in 2021, and would rank as the third-largest global high-yield bond deal on record, according to LSEG data. The bonds are anticipated to receive a BB+ rating from S&P and Fitch.
Bookings for the bonds close at noon New York time on Wednesday, with settlement expected on September 29. SoftBank has not yet commented on the matter.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- SoftBank takes orders for US$10bil in bonds to fund OpenAI investment freemalaysiatoday.com
- SoftBank taking orders for $10 billion in bonds to fund OpenAI investment, term sheet shows economictimes.indiatimes.com
