SoftBank’s Masayoshi Son goes all in on AI, raises $11.1B in the largest junk bond sale ever

Masayoshi Son has never been one for half measures. The SoftBank founder and CEO, who famously turned a $20 million bet on Alibaba into one of the greatest venture capital wins in history, is now borrowing at near-double-digit interest rates to chase what he believes is the next transformative technology wave. SoftBank raised $11.1 billion in high-yield bonds in late September, making it the largest junk bond sale in corporate history. The previous record holder was Numericable’s roughly $10 billion issuance back in 2014. Son’s message to the market was characteristically blunt: he’s “all in” on AI. Inside the record-breaking deal The bond offering was split across two currencies. The dollar-denominated portion totaled $10 billion in senior notes, carved into three tranches with escalating yields. The shortest tranche, $1 billion at 3.5 years, priced at 8.625%. The two larger tranches, $4.5 billion each at 5.5 and 7.5 years, priced at 9.25% and 9.75% respectively. Then there was the euro component: two €500 million tranches yielding 7.125% over four years and 8% over six years, bringing the total euro portion to €1 billion. Despite the steep pricing, investor appetite was strong. T...