Softbank Group Corp plans to issue $3.56 billion in foreign currency-denominated senior notes, with the proceeds designated for debt repayment. The Japanese technology investment firm announced on Thursday that it will sell $1.5 billion in US dollar-denominated bonds, along with euro-denominated notes totaling €1.75 billion (equivalent to $2.06 billion). Softbank intends to use the funds raised from this issuance to settle outstanding debts, which include a bridge loan facility obtained to finance its investment in OpenAI.
The company specified the coupon rates for the offerings. For the US dollar bonds, the 3.5-year notes will carry a coupon of 7.625%, the 5.5-year bonds will pay 8.250%, and the 10-year bonds will offer 8.500%. For the euro-denominated bonds, the 4-year notes will have a 6.375% coupon, the 6-year bonds will pay 7.000%, and the 8-year bonds will offer a 7.375% interest rate. These notes have been assigned a credit rating of BB+ by Standard & Poor's Financial Services.
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