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SoftBank Expands OpenAI Loan Syndicate
27 Jul
Summary
- SoftBank's bridge loan for OpenAI investment now has 21 new lenders.
- New lenders added approximately $7 billion to the $40 billion facility.
- The unsecured loan matures in March 2027 with an initial margin over SOFR.
SoftBank Group has broadened the financial backing for its substantial $40 billion bridge loan intended for its investment in OpenAI. The company has successfully brought 21 new banks and financial institutions into the lending syndicate.
These new participants have committed approximately $7 billion to the facility. Notable commitments include close to $1 billion each from First Abu Dhabi Bank, GIC, and Standard Chartered. The remaining funds were distributed among various European, Japanese, and Taiwanese banks.
This unsecured loan serves to finance SoftBank's OpenAI commitment and general corporate needs. The facility has a maturity date of March 2027. Currently, it carries an initial margin of about 250 basis points over SOFR, translating to an approximate interest rate of 6.14% based on current conditions.
The original underwriters and senior lenders continue to hold the remaining $33 billion of the loan. However, there remains the possibility that more of this debt could be syndicated to other parties in the future.
