Softbank Group launches over $10 billion in bonds for OpenAI investment, term sheet shows

SoftBank Group Corp has launched $10 billion and 1 billion euro-denominated senior unsecured notes to fund its investment in OpenAI, a term sheet showed 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, according to the term sheet.

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


SoftBank earlier secured a $10 billion bridge loan facility to fund its OpenAI investment, and the bonds will be cancelling that, according to the term sheet.

The bond issuances are expected to price on September 24 and settle on September 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.