SoftBank (SFTBY) Considers Massive Bond Offering to Cover OpenAI Bridge Loan

Key Highlights

• SoftBank is discussing with major banks a potential bond offering ranging from $10 billion to $20 billion, with a possible September launch date.
• Funds raised would be directed toward refinancing a $40 billion bridge facility obtained earlier in 2026 for its OpenAI commitment.
• The company’s cumulative OpenAI investment is projected to reach approximately $64.6 billion, securing a 13% ownership position.
• SFTBY finished Tuesday’s trading at $16.04, gaining 1.71%, though the stock has declined over 12% in the preceding five-day period.
• Current Wall Street consensus shows a Hold rating from two analysts, with TD Cowen projecting a $20 target price.

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Shares of SoftBank (SFTBY) ended Tuesday at $16.04, registering a 1.71% increase, despite experiencing a decline exceeding 12% throughout the past week.

SoftBank Group Corp., SFTBY

The Tokyo-based technology conglomerate is currently evaluating a substantial bond issuance valued between $10 billion and $20 billion. The debt instruments could be denominated in either U.S. dollars or euros, with market entry potentially occurring as soon as September.

Proceeds from the offering would be allocated toward retiring a $40 billion bridge financing facility secured in March 2026. This short-term credit line was primarily arranged to facilitate another round of capital infusion into OpenAI, along with addressing broader corporate requirements. The facility reaches maturity in March 2027.

SoftBank initially committed in February to inject an additional $30 billion into OpenAI through three separate $10 billion installments. The first two tranches were successfully deployed in April and July. The concluding installment is scheduled for October 1.

Following the completion of this final transfer, SoftBank’s aggregate investment in OpenAI is anticipated to total approximately $64.6 billion, translating to roughly a 13% ownership stake in the artificial intelligence company behind ChatGPT.

The bond issuance remains under consideration, with no definitive commitment made. Details regarding the offering’s magnitude, timeline, and framework continue to be negotiated, and SoftBank informed Bloomberg that it is evaluating multiple refinancing alternatives.

SoftBank Pursues Alternative Collateral-Based Financing

Beyond the proposed bond offering, SoftBank has recently resumed discussions to secure $10 billion through a collateralized loan backed by its OpenAI holdings. This approach would provide the corporation with an additional mechanism to address its debt obligations without liquidating portfolio assets.

The magnitude of SoftBank’s artificial intelligence financing strategy is notable. Throughout the wider marketplace, corporations have raised more than $410 billion through bond issuances dedicated to AI infrastructure and associated capital expenditures during the current year.

Analyst Community Maintains Neutral Stance on SFTBY

Both TD Cowen and Jefferies analysts maintain Hold ratings on SFTBY shares. Krish Shankar from TD Cowen has established a $20 price objective for the equity, representing upside from the current market price near $16.

From a valuation perspective, SFTBY appears elevated. GuruFocus calculates the GF Value at $8.86, indicating the shares are trading at a significant premium relative to estimated intrinsic value. The firm’s Price-to-Sales multiple substantially exceeds its historical median of approximately 1.6x.

SoftBank presently operates without profitability and maintains negative cash flow generation, constraining the applicability of conventional earnings-based valuation methodologies. Its GF Score registers 69 out of 100, accompanied by a financial strength assessment of merely 3 out of 10.

Investment gurus have neither increased nor decreased SFTBY positions in recent months, and company insiders have conducted no purchase or sale transactions during the past three reporting quarters.

SFTBY concluded Tuesday’s session at $16.04, advancing 1.71% for the day.

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Source: https://blockonomi.com/softbank-sftby-considers-massive-bond-offering-to-cover-openai-bridge-loan/