Banks Selling $3 Billion Debt for Meta’s Prometheus Data Center
(Bloomberg) — Including Natixis SA, Mitsubishi UFJ Financial Group Inc. and a group of banks including Societe Generale SA, Meta Platforms Inc., the latest deal to support the creation of AI infrastructure. It began selling $3 billion in loans for a data center in Ohio backed by .
According to sources familiar with the matter, the overall syndication of loans for the data center building and related energy assets was structured in a single transaction. Royal Bank of Canada and Sumitomo Mitsui Banking Corp were also arrangers of the transaction, said the people who were not authorized to speak publicly.
The 1-gigawatt New Albany, Ohio cluster, known as Prometheus, is one of several massive data centers Meta is investing in to power its AI efforts. It is expected to come online this year, according to Chief Executive Mark Zuckerberg, who has pledged to spend hundreds of billions of dollars on artificial intelligence and the infrastructure needed to support it by the end of the decade.
Sources said that the banks aim to complete the marketing process on April 16 after starting negotiations last month.
They said the transaction consisted of two construction loans: a $2.1 billion tranche and a $900 million tranche. They will be offered as four-year loans, each with a one-year extension. Pricing is shown to be 2.5 percentage points above the benchmark for both loans, and the majority of these loans will be sold at pro-rata.
Upfront fees are based on a table based on commitment sizes, people are upset. They added that investors can purchase various layers of debt ranging from $75 million to $125 million and pay fees between 0.375 percent and 1.25 percent on those debts.
The debt is marketed to investors, including banks, institutional investors and private lenders. The Financial Times was first to report some details of the transaction.
EdgeConneX Inc., a data center operator acquired by private equity firm EQT Infrastructure, will operate the Ohio project.
Representatives for Meta, MUFG, SMBC, RBC and EQT Partners, EQT Infrastructure’s parent company, declined to comment. Natixis, SocGen and EdgeConneX did not immediately respond to requests for comment.
Last year, Meta sold $30 billion of investment-grade bonds in a record-breaking transaction. Additionally, Pacific Investment Management Co. to help finance the Hyperion data center facility in Richland Parish, Louisiana. and Blue Owl Capital Inc. signed a $29 billion private equity agreement with.
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