SoftBank launches US$10b and euro bond sale to fund OpenAI investment

SoftBank Group Corp has launched US$10 billion in dollar-denominated and €1 billion in euro-denominated senior unsecured notes to finance its third-tranche payment for its OpenAI investment. The bonds, which will also repay an existing bridge loan, are expected to price on 24 Sept and settle on 29 S

HONG KONG, Sept 21 – SoftBank Group Corp has launched US$10 billion in dollar-denominated and €1 billion in euro-denominated senior unsecured notes to fund its investment in OpenAI, according to a term sheet seen on Monday.

The dollar-denominated notes are split into 3-1/2-year, 5-1/2-year and 7-1/2-year tenors, while the euro-denominated bonds are split into 4-year and 6-year tenors, the term sheet showed.

Proceeds will be used to fund SoftBank's US$10 billion payment for the third tranche of its follow-on investment in OpenAI, which is expected to close on Oct 1, and for general corporate purposes, the term sheet said.

SoftBank earlier secured a US$10 billion bridge loan facility to fund its OpenAI investment, and the bond issuances will cancel that facility, according to the term sheet.

The bonds are expected to price on Sept 24 and settle on Sept 29, the term sheet said. SoftBank Group could not be immediately reached for comment as it was a holiday in Japan.

Citigroup and JPMorgan are lead bookrunners of the notes, according to the term sheet.