SoftBank raises $11 billion via dollar and euro bonds
SoftBank Group launched $10 billion of dollar-denominated senior unsecured notes and €1 billion of euro-denominated notes to finance its $10 billion third-tranche payment for a follow-on investment in OpenAI and to replace a $10 billion bridge loan. The dollar notes come in 3.5-, 5.5- and 7.5-year maturities while the euro notes are four- and six-year tranches. Pricing is expected on September 24 with settlement on September 29, and Citigroup and JPMorgan are lead bookrunners. The transaction increases SoftBank's debt load and concentrates more capital toward OpenAI ahead of an expected October 1 close.
SoftBank issued $11 billion bonds to fund its $10 billion OpenAI tranche.
Context
SoftBank had secured a $10 billion bridge loan to finance the OpenAI payment. The company is replacing that bridge loan with bond issuance. The bond proceeds are timed to settle before the expected October 1 closing.
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