BlackRock Buys $3B Stake In Meta’s Hyperion AI Data-Center Debt Deal

Benzinga

BlackRock invested over $3B in Meta’s $27B Hyperion data center financing, the largest private-debt deal ever. The A+ rated bonds yield 6.58%, with early gains as prices rose to 110.2 cents on the dollar.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02BlackRock was among the largest investors in the $27 billion private debt deal backing

00:06of the construction of Metis Hyperion Data Center in Louisiana, according to the Wall Street Journal.

00:11BlackRock purchased over $3 billion in bonds to finance Metis Hyperion Data Center

00:16and 80-20 joint venture with Blue Isle Capital, arranged by Morgan Stanley.

00:20The $27 billion deal, the largest private debt offering ever,

00:24received an A-plus rating from S&P due to Metis backing,

00:26but offered a high 6.58% yield, typical of junk bonds.

00:31PIMCO reportedly purchased $18 billion, while portions of BlackRock's buy were allocated to its ETFs,

00:36including a high-yield fund only $2.1 million of the debt.

00:39Bonds initially priced at par, valued money at $110.2 on the dollar,

00:45applying early gains for investors.

00:47For all things money, visit Benzinga.com.

Category

Transcript

Be the first to comment

Recommended