"Oracle's $16.3 billion data center financing closed this week, the largest single-facility technology debt package ever assembled, requiring a bond fund to anchor it due to US banks' reluctance."
"PIMCO purchased approximately $10 billion of the roughly $14 billion bond tranche, with the remainder including about $2 billion in equity from Related Digital Infrastructure and Blackstone."
"The bonds carry a 7.5% coupon with a 19.5-year maturity, structured with six years of interest-only payments followed by 13 years of amortization, reflecting the project's finance nature."
Oracle closed a $16.3 billion financing for a data center in Saline Township, Michigan, marking the largest single-facility technology debt package. PIMCO anchored about $10 billion of the bond tranche due to US banks' retreat over concerns about AI infrastructure demand. This financing is part of a larger $72 billion debt for data centers across multiple states. The bonds feature a 7.5% coupon and a 19.5-year maturity, with a structure that includes six years of interest-only payments followed by 13 years of amortization.
Read at TNW | Data-Security
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