SoftBank seeks second $10B loan to fund OpenAI bet

SoftBank Group is seeking a $10 billion loan to help refinance debt tied to its investment in OpenAI, just 22 days after closing a loan of the same size secured against the same asset, Bloomberg reported on Friday.bloomberg

The two-year facility would carry an interest margin of around 275 basis points over the Secured Overnight Financing Rate, with Mizuho Bank ↘ 0.10% serving as lead arranger and bookrunner. Commitments are due August 31, and banks are already in talks to join.finimize+1

Replacing the Bridge

Proceeds would partly repay a $40 billion bridge loan SoftBank secured in March to fund its OpenAI commitments. That bridge facility must be repaid or refinanced by March 2027, creating a hard deadline that has driven a rapid sequence of financing efforts over the past five months.thenextweb+1

SoftBank, founded and led by billionaire Masayoshi Son, is expected to invest close to $65 billion in OpenAI by October. The company is also considering a bond offering of $10 billion to $20 billion and is planning a record ¥1 trillion (approximately $6.3 billion) retail bond sale in Japan.bloomberg+1

A Pace Measured in Weeks

The cadence of borrowing has accelerated notably. SoftBank closed its first $10 billion margin loan, backed by its OpenAI stake and a corporate guarantee, on August 6. Two days before the latest loan report, Bloomberg reported the company was weighing the multibillion-dollar bond sale.thenextweb

S&P rates SoftBank at BB+ with a negative outlook, placing it in junk territory. The margin loan closed earlier this month includes covenants that may require SoftBank to post additional cash or repay early if the value of its OpenAI holdings declines.cryptobriefing+1

Lending Into Uncertainty

The financing push comes as lenders face the challenge of valuing collateral in a private company with no public market price. OpenAI filed confidentially with the SEC in June, pointing toward an eventual listing that would establish a tradable value for the shares SoftBank keeps pledging. Until then, every lender is taking a view on a number no one can independently verify.thenextweb

SoftBank and Mizuho declined to comment.bloomberg