SoftBank weighs up to $20 bln bond sale to refinance OpenAI loan - Bloomberg
Investing.com-- SoftBank Group (TYO:9984) is in talks with investment banks about a potential $10 billion to $20 billion bond sale to help refinance a loan tied to its investment in OpenAI, Bloomberg News reported on Wednesday, citing people familiar with the matter.
The offering could be denominated in dollars and euros and come as early as September, although the size, timing and structure remain subject to change, the report said.
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SoftBank told Bloomberg it was considering various options to refinance the bridge loan, but that nothing had been decided.
Part of the proceeds could repay a $40 billion bridge loan secured earlier this year for its OpenAI investment, Bloomberg reported. SoftBank is slated to invest nearly $65 billion in OpenAI by October, funded partly through borrowings.
The potential sale could be SoftBank’s second offshore bond offering this year and its largest if it reaches $20 billion. The company is also considering a 144A offering, which would broaden access to U.S. institutional investors, Bloomberg said.
SoftBank sold $3.6 billion of dollar- and euro-denominated bonds in April, including a 10-year dollar tranche carrying an 8.5% coupon.
Tokyo-listed SoftBank shares traded 2.8% higher at 5,228.00 yen by 05:16 GMT.
