Meta faces higher borrowing costs in $12 billion data center financing
Meta
BlackRock
In a new data center financing deal for Meta (recognized as an extremist organization in the Russian Federation) worth $12 billion, investors are demanding yields above 7%, significantly higher than terms nine months ago. The El Paso project, with a capacity of nearly 1 GW, plans to issue bonds through BlackRock's SPV.
According to reports, bondholders are demanding significantly higher yields on a new $12 billion financing deal for a Meta data center project compared to the terms agreed nine months ago. The market has already priced in increased risk associated with AI financing. The nearly 1 GW data center project in El Paso, Texas, plans to issue bonds through a special purpose vehicle (SPV) managed by BlackRock. Preliminary discussions are targeting a yield above 7%. Sources note that pricing discussions are at an early stage and may change when the deal is officially launched, which is expected no earlier than next Monday.
Source: 36Kr —
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