SoftBank to prepay $25.9B OpenAI bridge loan early

SoftBank Group announced Wednesday that it will prepay the entire outstanding balance of $25.9 billion on its $40 billion bridge loan by September 15, more than six months ahead of the facility's March 2027 maturity date. The move marks a pivotal step in the Japanese conglomerate's effort to replace short-term borrowing with longer-duration financing as it deepens its bet on artificial intelligence.group+1

The Bridge Loan

The bridge facility, signed on March 27, 2026, was arranged by JPMorgan Chase ↘ 0.73%, Goldman Sachs The Goldman Sachs Group, Inc. ↘ 1.38%, Mizuho Bank, Sumitomo Mitsui Banking Corporation, and MUFG Bank to fund a $30 billion follow-on investment in OpenAI through SoftBank Vision Fund 2. Of the $40 billion total facility, $30 billion had been drawn, leaving the outstanding balance at $25.9 billion after partial repayments.morningstar+3

The early repayment signals SoftBank's confidence in its ability to secure alternative funding. According to Bloomberg, the company has lined up investor meetings in New York from September 14 to September 17 to gauge demand for a junk-bond sale that could raise between $10 billion and $20 billion, potentially including a tranche denominated in euros. SoftBank has also secured a $10 billion margin loan backed by its OpenAI stake, according to NewsBytes.newsbytesapp+2

Refinancing Strategy

The bridge loan was unsecured and carried a 12-month maturity, a structure that left SoftBank exposed to refinancing risk. By retiring the debt early and pivoting to bonds and other instruments, Masayoshi Son's company aims to lock in more stable, longer-term capital to support its AI ambitions.Bloomberg

SoftBank's February 2026 agreement to invest $30 billion in OpenAI was itself part of a broader push that includes the Stargate AI infrastructure project. The follow-on investment made SoftBank one of the largest backers of the ChatGPT maker, deepening a relationship that has placed the conglomerate at the center of the global AI financing landscape.tech-insider

Market Context

SoftBank shares on the Tokyo Stock Exchange have risen roughly 38% since the start of 2026, reflecting investor appetite for its AI-heavy portfolio. The prepayment announcement came alongside reports that SoftBank is exploring what would be one of the largest-ever junk-bond offerings, underscoring both the scale of its financing needs and its willingness to tap high-yield markets to fund them.marketscreener

Microsoft ↗ 0.52%, which backs OpenAI and participated in earlier funding rounds, remains a key partner in the venture. The Dow Jones wire service reported Wednesday that SoftBank had originally committed to repaying the bridge loan by March 25, 2027.morningstar