SoftBank launched $10 billion of bonds to pay OpenAI by October 1.
Reuters reported on 21 September, citing a term sheet, that SoftBank Group launched $10 billion of dollar senior unsecured notes across three tenors of 3.5, 5.5 and 7.5 years.
It also launched €1 billion of euro notes over 4 and 6 years.
The money will fund SoftBank's $10 billion payment for the third tranche of its follow-on investment in OpenAI, expected to close on 1 October, as well as general corporate purposes. The bonds replace a $10 billion bridge loan SoftBank had arranged for the same payment. Pricing is expected on 24 September, with settlement on 29 September. Citigroup and JPMorgan are lead bookrunners.
One instalment of one investor's stake in one AI lab is being funded through bonds sold to the market. Some run for seven and a half years.
The report includes no comment from SoftBank or OpenAI.
Do you know who funds your AI vendor, and does your contract cover data return and transition if that funding dries up?
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