Business · Companies · 1 hr ago

Anthropic offers Blackstone more than 10% yield on proposed debt

Anthropic offers Blackstone more than 10% yield on proposed debt

Anthropic is negotiating $60 billion in financing to buy about 1.5 gigawatts of Google’s AI chips, called TPUs.

The financing would include $42 billion in senior debt guaranteed by Broadcom and $18 billion in subordinated debt, which is repaid after senior debt.

Anthropic is discussing with Blackstone an investment of half that subordinated debt, and has offered a yield above 10%.

That is higher than the roughly 7% yield typically paid by borrowers with similar credit ratings in public bond markets.

Anthropic plans to sell the remaining $9 billion of subordinated debt to investors over the coming months, and its yield could be lower.

The higher borrowing cost points to investors demanding more compensation for risk as companies fund AI infrastructure.

Anthropic issued about $4.4 billion in similar debt at an 8.5% yield four months earlier, and a future stock listing and investment-grade rating could reduce its borrowing costs.

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