SoftBank launches $11B bond sale to fund OpenAI investment
What's the story
SoftBank Group has launched over $10 billion worth of bonds to fund its investment in OpenAI. The term sheet revealed that the company is issuing senior unsecured notes worth $10 billion and €1 billion. The dollar-denominated notes will have three maturities: 3.5 years, 5.5 years, and 7.5 years, while the euro-denominated bonds are split into 4-year and 6-year periods.
Investment details
Proceeds to fund SoftBank's $10B payment for OpenAI investment
The proceeds from these bond issuances will be used to fund SoftBank's $10 billion payment for the third tranche of its follow-on investment in OpenAI.
The transaction is expected to close on October 1. The funds will also be used for general corporate purposes, as per the term sheet.
Notably, these bond issuances are expected to price on September 24 and settle on September 29.
Loan details
Bridge loan facility to be canceled
Previously, SoftBank had secured a $10 billion bridge loan facility to fund its investment in OpenAI. However, with the new bond issuances, this bridge loan facility will now be canceled.
Citigroup and JPMorgan are the lead bookrunners for these notes, as per the term sheet.