SoftBank Group Prices $11.1 Billion Multi-Tranche Bond Offering to Fund OpenAI Investment

MT Newswires Live
Sep 24

SoftBank Group (TYO:9984) has priced an $11.1 billion multi-currency bond offering, comprising $10 billion in US dollar notes across three tranches and 1 billion euros in European bonds across two tranches, according to a Thursday company statement.

The US dollar-denominated tranches consist of notes due in 2030, 2032, and 2034, carrying coupon rates of 8.625%, 9.250%, and 9.750%, respectively. The euro-denominated tranches, maturing in 2030 and 2032, carry interest rates of 7.125% and 8.000%. All notes are priced at 100% of principal with semi-annual interest payments.

The notes, rated BB+ by S&P Global and Fitch Ratings, are scheduled to settle on Sept. 29 and will be listed on the Singapore Exchange.

Proceeds from the issuance will be used to fund the third and final $10 billion tranche of SoftBank's $30 billion follow-on investment in OpenAI, expected to close Oct. 1, with the remaining balance earmarked for general corporate purposes.

Concurrently, Softbank expects to cancel the remaining $10 billion of undrawn capacity under its $40 billion bridge facility agreement entered into in March.

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