SoftBank prices record $11.1B bond for OpenAI stake
The move
SoftBank priced $11.1 billion in dollar- and euro-denominated bonds on September 24, the largest high-yield corporate bond sale on record, with yields as high as 9.75%. The money funds a roughly $10 billion installment toward SoftBank's approximately $64.6 billion investment in OpenAI, which is due to close October 1.
Why it matters
It shows how much debt Son is willing to take on to fund SoftBank's AI bets, and investors are still lining up: SoftBank shares jumped more than 7% on the news when Japanese markets reopened.
The bear case
Paying up to 9.75% shows lenders are charging a steep premium given SoftBank's growing debt load and OpenAI's still-distant IPO.
What to watch
The bond's settlement on September 29 and the OpenAI investment closing October 1.