Apollo in Talks to Boost SoftBank Loan from $5.4B to $9B

PANews, September 17 - According to Bloomberg, Apollo Global Management is in discussions with SoftBank Group to increase a loan facility from $5.4 billion to $9 billion, aimed at supporting its investment in OpenAI. The loan, collateralized by assets of SoftBank's Vision Fund 2, is a net asset value (NAV) loan that was originated in 2021 and increased to $5.4 billion last year. The new size has not been finalized, and both parties declined to comment. SoftBank has committed $64.6 billion to invest in OpenAI and secured a $10 billion loan in August backed by its OpenAI stake. This week, SoftBank's credit default swap prices rose to a three-year high, while the company is also meeting with investors in New York to discuss a potential overseas high-yield bond issuance of $10 billion to $20 billion.