Aug. 17 at 8:11 PM
A
$3.9 billion bond offering tied to Microsoft has attracted more than
$8 billion in investor demand, leading to an increase of roughly
$1 billion from the initial target, Bloomberg reported. The strong demand highlights continued investor appetite for debt linked to AI and data-center infrastructure.
The bonds are being sold through Blackstone-backed QTS Realty Trust subsidiaries to finance a data center project in Georgia. The debt is expected to be issued by two special-purpose subsidiaries of QualityTech LP, a QTS unit.
The offering carries a coupon in the high-6% range, while the discounted pricing would push yields into the low-to-mid 7% range. That is comparable to single-B junk bonds, even though the securities are expected to receive investment-grade ratings, reflecting the relatively attractive returns being offered to investors.
Citigroup, Goldman Sachs, JPMorgan and Morgan Stanley held investor calls last week and are managing the transaction.
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