JPMorgan Chase & Co. is pitching a yield of about 11% on a $5 billion leveraged-loan sale on behalf of Volta Infrastructure Holdings Ltd., one of the highest borrowing costs seen in the market for risky debt financing the AI boom. The loan is being marketed at 6.25 to 6.5 percentage points above the benchmark rate, with a discounted price of 97 to 98 cents on the dollar.
Smaller, riskier neoclouds are turning to the leveraged loan market for AI infrastructure, with earlier deals by Core Weave Inc., Lambda Inc. and Crusoe Inc. at lower costs. The Volta deal includes debt for a data center in Norway, managed with Bitdeer Technologies Group, and Anthropic has signed a six-year compute capacity agreement.
Volta was founded by Ricard Boada and Sofia Gumuzio, former Brookfield Asset Management Ltd. executives. The transaction is unrated and split into two tranches: a $3.7 billion chip loan for Nvidia Corp. GPUs and a $1.3 billion loan for a data center lease. Lenders must buy portions of both tranches to participate.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing