SoftBank Group Corp has launched US$10 billion and €1 billion in senior unsecured notes to fund its investment in OpenAI, according to a term sheet seen by Reuters.
The dollar-denominated notes are split across 3.5-year, 5.5-year and 7.5-year maturities, while the euro-denominated bonds comprise four-year and six-year maturities.
The proceeds will 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, as well as general corporate purposes.
SoftBank had earlier secured a US$10 billion bridge loan facility to fund the OpenAI investment, with the bond proceeds set to replace that financing, according to the term sheet.
The bond issues are expected to be priced on Sept 24 and settled on Sept 29.
Citigroup and JPMorgan are serving as lead bookrunners for the notes.
SoftBank could not be immediately reached for comment as Japan was observing a holiday.
