Texas developer KDC is seeking approximately $3.5 billion in private financing to fund construction of AT&T Inc.'s new global headquarters in Plano, Texas. The financing would be structured as credit tenant lease financing, secured by future lease payments from AT&T rather than the underlying real estate. CGA Capital and CBRE are arranging the debt, which people familiar with the matter expect to have a weighted-average life of 18.7 years.
This deal would be significantly larger than the typical range of $25 million to $100 million for this financing type. The 54-acre corporate campus has received a Plano City Council incentive package requiring AT&T to invest at least $1.35 billion in construction costs. The development marks AT&T's move from downtown Dallas to the suburbs, following similar relocations by Wells Fargo & Co. and Caterpillar Inc. KDC, CGA Capital, and CBRE declined to comment on the confidential financing details.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing