US EditionSoftBank Seeks $10 Billion Margin Loan Backed by OpenAI Shares, Bloomberg News Reports
The loan would add to SoftBank’s $40 billion bridge financing and raise its OpenAI commitment to about $64.6 billion, analysts said.
- SoftBank Group Corp. is seeking a $10 billion margin loan secured by its OpenAI shares, Bloomberg reported on Wednesday.
- The new loan sits atop a $40 billion bridge loan from March, bringing SoftBank's total OpenAI commitment to ~$64.6 billion for a ~13% stake.
- Global Ratings downgraded SoftBank's outlook to negative in March, noting OpenAI has the "weakest credit quality" in the portfolio, while secondary market data shows sellers outnumbering buyers five-to-one.
- Credit-Default swaps on SoftBank debt widened to approximately 360 basis points after the loan was reported, while the company faces a $32 billion funding gap over two years.
- Masayoshi Son chairs the Stargate joint venture with an initial $100 billion commitment to AI infrastructure; analysts warn that with ~$135 billion in total debt, the distance between visionary and reckless is one down round.
13 Articles
13 Articles
SoftBank seeks $10B margin loan backed by OpenAI shares at SOFR+425bps as leverage stack deepens
Summary: SoftBank is seeking a $10 billion margin loan backed by its OpenAI shares at SOFR + 425 basis points (~7.88%), a two-year term with one-year extension. The loan sits atop a $40 billion bridge loan from March and brings SoftBank’s total OpenAI commitment to ~$64.6 billion for a ~13% stake. At OpenAI’s $852 billion […] This story continues at The Next Web
Times of India
The Economic TimesSoftBank seeks $10 billion margin loan backed by OpenAI shares: Bloomberg
SoftBank is reportedly seeking a massive $10 billion loan, leveraging its stake in ChatGPT's creator, OpenAI. This move signals the Japanese tech giant's intensified commitment to artificial intelligence, following a period of significant financial volatility. The loan, potentially extendable, follows a substantial $40 billion bridge loan secured earlier this year to fuel further AI investments.
Sources: SoftBank seeks a $10B two-year margin loan secured by its OpenAI shares, with an option for a year extension, as SoftBank aims to become an AI linchpin (Bloomberg)
Bloomberg: Sources: SoftBank seeks a $10B two-year margin loan secured by its OpenAI shares, with an option for a year extension, as SoftBank aims to become an AI linchpin — SoftBank Group Corp. is seeking a $10 billion loan secured by its shares in US artificial intelligence giant OpenAI …
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