SoftBank Sees Over $20 Billion in Preliminary Demand for Junk Bond Offering
SoftBank Group Corp. has attracted more than $20 billion of preliminary investor interest for a potential junk bond offering, which could become one of the largest high-yield debt deals ever. The deal is expected to raise over $11 billion initially and may include both dollar- and euro-denominated tranches with yields potentially reaching record levels in those currencies at their respective maturities. The offering aims to fund SoftBank's continued investments, particularly its nearly $65 billion commitment to OpenAI. The deal is being closely watched as a test of investor sentiment toward AI-related financing amid growing volatility tied to the sector’s risks and promises. Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley, and Deutsche Bank are among the lead underwriters for this offering. SoftBank has been active in recent months with multiple large-scale financial moves, including a $40 billion bridge loan to fund its OpenAI investment and an increase of a margin loan backed by shares of Arm Holdings Plc. The company is expected to finalize pricing guidance soon ahead of the deal's Thursday pricing.
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