SoftBank takes orders for $10 billion in bonds to fund OpenAI investment, term sheet shows

SoftBank ​Group Corp is taking investor ‌orders for ​a $10 billion dollar-denominated bond deal to help fund its OpenAI investments, according to ‌a term sheet reviewed by Reuters on Wednesday.

The Japanese conglomerate is aiming to raise $1 billion in a 3-1/2-year bond, $4.5 billion in a 5-1/2-year ‌bond and $4.5 billion in a 7-1/2-year bond deal, the term ‌sheet showed. Potential investors have been told the price guidance for the 3-1/2-year bond is 8.75% to 8.875%, the 5-1/2-year bond is 9.375% to 9.5% and ⁠the 7-1/2-year ​bond is ⁠9.75% to 9.875%, according to the term sheet.

If completed at $10 billion, the deal ⁠would be the largest high-yield bond sale on record by an Asia-Pacific ​and Japan issuer, topping SoftBank's own $7.35 billion deal in 2021, according ⁠to LSEG data. It would also rank the third-largest global high-yield bond deals on ⁠record, ​LSEG data showed.

The bonds are expected to be rated BB+ by S&P and Fitch. Books close at noon New ⁠York time on Wednesday with settlement expected on September 29, the term ⁠sheet ⁠showed. SoftBank did not immediately respond to a request for comment.