SoftBank adds $21 billion to AI firepower in new debt deals
- On Friday, SoftBank Group Corp. increased its margin loan backed by Arm Holdings Plc shares by $5 billion to $25 billion, marking the third expansion as founder Masayoshi Son funds growing AI investments.
- With a $65 billion commitment to OpenAI, SoftBank is financing aggressive data center expansion, including 8.8 gigawatts across America requiring $174 billion in capital spending plus a planned 5-gigawatt facility in France.
- SoftBank spent the week meeting with New York fixed-income investors to gauge appetite for a $10 billion to $20 billion junk bond potentially reaching market next week, while securing an additional $450 million to expand an existing credit line to $6.5 billion with more than 20 banks.
- Earlier this week, credit-default swaps marking a three-year high reflected market sensitivity to SoftBank's debt expansion, even as the firm repaid $25.9 billion on a bridge loan and Apollo Global Management discussed increasing its loan to $9 billion.
- The safety-related postponement of OpenAI's listing intensifies debates about debt-funded artificial intelligence bets, as investors increasingly worry about multibillion-dollar AI projects where revenue payoff remains largely uncertain despite strong lender demand.
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13 Articles
The Economic Times
Times of IndiaSoftBank adds $21 billion to AI firepower in new debt deals
The Japanese conglomerate increased its margin loan backed by shares of its chip unit Arm Holdings Plc by $5 billion to $25 billion, people familiar with the matter said on Friday. And it recently secured an additional $450 million to an existing credit line, bringing the total to $6.5 billion, according to people familiar with that deal.
SoftBank expands $6.05bn credit facility to $6.5bn with 20-plus banks
SoftBank Group has added $450m to an existing credit line, lifting the facility to $6.5bn, people familiar with the matter told Bloomberg. Set against what the company is spending on OpenAI, the sum is a rounding error. Set against the week SoftBank has just had, it is more like a seatbelt. The previous facility, worth $6.05bn, […] This story continues at The Next Web
SoftBank Raises Arm Margin Loan to $25 Billion as AI Bets Grow
SoftBank Group Corp. has increased its margin loan backed by shares of its chip unit Arm Holdings Plc by $5 billion to $25 billion, according to people familiar with the matter, as the conglomerate finds ways to fund its expanding investments in artificial intelligence.
SoftBank Group has further strengthened its available financing, as it secured an additional $450 million, increasing its existing credit line to $6.5 billion. The move offers greater flexibility to the Japanese group, as it expands its investments in the field of artificial intelligence and seeks ways to finance its strategy. According to sources cited by Bloomberg and asked not to be named, the previous credit line, amounting to $6.05 billion,…
In parallel, SoftBank prepares a massive bond placement for next week, the amount of which could be between 10,000 and 20,000 mdd.
SoftBank Group has secured an additional credit facility of $450 million, raising its total
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