SoftBank Seeks $10 Billion Loan Using OpenAI Shares as Collateral

SoftBank is seeking to refinance its $40 billion bridge loan facility by borrowing an additional $10 billion, using OpenAI shares as collateral. The move aims to address a looming deadline of March 2027, when the debt matures. SoftBank's cumulative commitments to OpenAI total around $65 billion, representing about a 13% stake in the AI company.

The previous attempts at arranging margin loans were stalled due to disagreements over valuing privately held shares, which can't be easily sold on an open market. To sweeten the deal, SoftBank has reportedly offered a corporate guarantee on the margin loan.

Additionally, SoftBank is exploring a bond offering valued between $10 billion and $20 billion, potentially denominated in both US dollars and euros. The company's credit rating with S&P currently stands at BB+, with a negative outlook, placing it firmly in junk territory.