Lenders evaluating the SoftBank Group’s $40bn one-year bridge loan describe the deal as well-structured and say it addresses most risks they could think of, while some expressed concerns over the unpredictable life-cycle of AI products.
Many loan bankers in Asia — where abundant liquidity and fierce competition for assets often lead to tight pricing and loose structure — find the unsecured bridge loan attractive with its structure and extensive fee coverage. (Detailed terms, pricing, fee structure and financial covenants can be found in the full article, available exclusively to 9fin clients)
The pros
“The tenor is short, the pricing is reasonable,” said a senior loan banker at a regional bank who is considering joining the syndication, “there is step-up commitment fees to compensate non-utilization, additional margins and duration fees to encourage early repayment. There are also mechanisms to ensure that future loans or equity raised based on key assets will be used to repay this loan.” They described the structure as “water-tight”.
Maturing on 25 March 2027, the loan — which will back SoftBank’s investment in OpenAI— offers an opening interest margin of SOFR+250bps and a funding fee of 25bps flat, which will be paid to lenders when...
