SoftBank taking orders for $10 billion in bonds to fund OpenAI investment, term sheet shows
SoftBank Group Corp is taking investor orders for a $10 billion dollar bond deal to help fund its OpenAI investments, according to a term sheet reviewed by Reuters on Wednesday.
SoftBank Group Corp is seeking investor orders for a US$10 billion bond deal to support its investment in OpenAI, according to a term sheet seen by Reuters. The Japanese conglomerate intends to issue three bond tranches: US$1 billion for a 3-1/2-year bond, US$4.5 billion for a 5-1/2-year bond, and US$4.5 billion for a 7-1/2-year bond.
Potential investors have been provided with price guidance, with the 3-1/2-year bond priced between 8.75% and 8.875%, the 5-1/2-year bond between 9.375% and 9.5%, and the 7-1/2-year bond between 9.75% and 9.875%. If the deal reaches its target, it would mark the largest high-yield bond sale by an Asia-Pacific and Japanese issuer, surpassing SoftBank's own US$7.35 billion issuance in 2021, as per LSEG data.
The bonds are anticipated to receive a BB+ rating from S&P and Fitch. Book closing is set for noon New York time on Wednesday, with settlement scheduled for 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.
