Meta's $12.5B Texas Data Center Bond Draws 1.6x Subscriptions at 7.53% Yield on July 27

META-0.04%
BLK3.36%
MS-1.34%
AMZN-0.18%
According to BlackRock, Meta's 125 billion dollar Texas data center bond issued on July 27 received subscriptions of just 1.6x, with a yield of 7.53%. This marks the lowest subscription ratio among similar mega-deals and trails the average 4x for U.S. investment-grade AI infrastructure bonds this year. Arranged by JPMorgan and Morgan Stanley, the debt finances a joint Texas facility with BlackRock with a total cost of approximately 14 billion dollars, supported by Meta's 20-year lease agreement starting 2028. The elevated yield reflects cooling demand in the AI debt market, with Amazon's July AI bond declining from 3.4x subscriptions in March to 1.6x—identical to Meta's result.
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