SoftBank Secures $11.87 Billion Loan for OpenAI Investment as Shares Tumble
Summary
SoftBank secures an upsized $11.87 billion two-year loan from roughly 20 banks for its OpenAI investment, while its shares plunge as much as 13% amid plans to repay $25.9 billion in September and potentially sell up to $20 billion in U.S. junk bonds.
Key Points
- SoftBank secures an upsized $11.87 billion two-year loan from about 20 banks to fund its OpenAI investment, exceeding its $10 billion target.
- SoftBank shares tumble as much as 13% on Monday, their steepest drop since July 17, amid its expanding debt-financing push tied to OpenAI.
- SoftBank plans to repay $25.9 billion on Sept. 15 to clear the remaining balance of an earlier $40 billion OpenAI-financing loan, while considering a $10 billion to $20 billion U.S. dollar junk-bond sale.