SoftBank Group Corp has launched $10 billion of dollar-denominated senior unsecured notes and 1 billion euros of euro-denominated notes to help fund its investment in OpenAI, according to a term sheet reviewed by Reuters on Monday.
Bonds span multiple maturities
The dollar notes are being offered across three maturities: 3-1/2 years, 5-1/2 years and 7-1/2 years. The euro-denominated bonds are split into four-year and six-year maturities, the term sheet showed.
The proceeds will be used primarily to fund SoftBank's $10 billion payment for the third tranche of its follow-on investment in OpenAI. That transaction is expected to close on October 1, according to the term sheet.
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Bridge loan to be replaced
SoftBank had previously secured a $10 billion bridge loan facility to finance its OpenAI investment. The new bond issuance will be used to replace that bridge financing, according to the term sheet.
The debt offering comes as SoftBank continues to commit substantial capital to OpenAI, increasing its exposure to the artificial intelligence company as it expands its operations and investment requirements.
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Pricing expected this week
The notes are expected to be priced on September 24 and settle on September 29, the term sheet showed. Citigroup and JPMorgan are serving as lead bookrunners for the bond offering, according to the term sheet. SoftBank Group could not be immediately reached for comment on Monday because it was a holiday in Japan.
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