SoftBank secures $10 billion margin loan backed by OpenAI stake
SoftBank Group Corp. has secured a $10 billion margin loan backed by its stake in US tech giant OpenAI, marking another fundraising milestone in its
SoftBank Group Corp. has secured a $10 billion margin loan backed by its stake in US tech giant OpenAI, marking another fundraising milestone in its bet on artificial intelligence. The company entered into an agreement with Goldman Sachs Bank USA, JPMorgan Chase Bank NA, Mizuho Securities USA LLC, Apollo Global Funding LLC and Sumitomo Mitsui Banking Corp.
for the two-year loan on Wednesday, SoftBank said in its latest financial report. The financial institutions are the mandated lead arrangers for the loan, which the borrower plans to draw down this month, it added. SoftBank is the guarantor of the borrowing, which will be used for general corporate purposes for the group and its Vision Fund II-2, according to the disclosure.
The loan requires the borrower to post cash or repay early under certain conditions, such as a sharp drop in the value of OpenAI’s preferred shares, it said. The margin loan follows a record $40 billion bridge loan that SoftBank secured for its investments in OpenAI.
That facility attracted a new group of 21 lenders in a broader syndication phase last month.
The BriefWire