SoftBank issues $11B bonds for OpenAI investment
6.7 Investments SoftBank is issuing over $11B in bonds to fund a $10B payment to OpenAI, replacing a bridge loan. The multi-tranche offering is one of the largest junk bond sales to date.
SoftBank is launching a bond sale exceeding $11 billion, split between $10 billion in US dollar-denominated senior unsecured notes and €1 billion in euro-denominated bonds. The proceeds will fund a $10 billion payment due October 1, supporting SoftBank’s ongoing investment in OpenAI and replacing a previous $10 billion bridge loan. The offering is structured across five tranches, with maturities ranging from 3.5 to 7.5 years for the dollar notes and 4 to 6 years for the euro notes. Pricing is expected on September 24, with settlement on September 29. This bond sale is part of SoftBank’s broader financing strategy, targeting a 13% stake in OpenAI. Rated BB+ by Fitch, the issuance is among the largest junk bond sales by a single company, drawing close market attention amid SoftBank’s increased leverage and asset sales.
