Broadcom (AVGO.US) Secures Record $35 Billion AI Financing! Wall Street Giants Join In as the Largest Private Credit Asset in History Goes on Sale
Major Wall Street banks have begun trading the initial portion of a $35 billion financing deal, which is intended for the AI infrastructure expansion of Broadcom (AVGO.US) and Anthropic PBC.
According to Zhitong Finance APP, major Wall Street banks have begun trading the initial portion of a $35 billion financing plan, which is intended for Broadcom (AVGO.US) and Anthropic PBC’s AI infrastructure expansion. This also means that the largest private credit transaction in history is now being opened up to a broader group of investors.
According to sources, several banks including Bank of America and Morgan Stanley have been trading portions of the debt over the past week. Within the entire debt package, these banks are members of a $24 billion joint syndication team.
Other anonymous sources also revealed that Apollo Global Management has been marketing this debt to institutional investors. The company, together with Blackstone, arranged the $35 billion financing plan for the borrower. The borrower is a special purpose vehicle (SPV) responsible for purchasing custom chips developed by Google and Broadcom, which are then leased to Anthropic.
Based on bank transaction quotes disclosed by insiders, the purchase price of these bonds is between 100 cents and 100.5 cents on the dollar (i.e., issued at a discount or slight premium).
This debt transaction reflects that, as capital expenditures show no signs of slowing and tech companies race to expand their AI footprint, financing for artificial intelligence construction is moving across both public and private credit markets, or even presenting a hybrid model.
The deal uses a staged drawdown model, allowing the borrower to draw funds as needed. As chips are gradually delivered, funds will be distributed in about 16 installments over more than a year.
Sources previously said that once a portion of the debt is drawn, it can be traded in the 144a market, where qualified investors including insurance companies and mutual funds can buy and sell the debt securities.
Apollo launched its trading business at the end of 2024 and has been recruiting from Wall Street banks to strengthen its team. As of the end of the first quarter, the firm had traded $15 billion in private assets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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