❯ SoftBank seals an $11.87B two-year loan for its OpenAI stake, with about 20 banks committing above target

Loan sealedSoftBank sealed a two-year loan last week, drawing $11.87 billion in commitments from about 20 banks, above its original $10 billion target, Bloomberg reported. The money supports its OpenAI investment; SoftBank and the banks declined to comment.

How much leverageIt is not a standalone deal. SoftBank had already raised a $10 billion margin loan backed by its OpenAI stake and is preparing a high-yield bond of up to $20 billion. By its own disclosure, cumulative investment in OpenAI will reach $64.6 billion for about 13% of the company, with the final $10 billion due on October 1. SoftBank shares fell as much as 13% that day.

Who funds whomFor OpenAI’s cap table, SoftBank is pledging the same stake repeatedly, leaving financial flexibility squeezed before the next raise; for co-investors, the item to reassess is seniority in the repayment order, not the valuation.

▪ SIGNALPledging the same OpenAI stake repeatedly turns the risk from valuation into repayment order.