Nvidia-Tied Data Center Taps Junk-Debt Market for $4.5 Billion
Attendees on the exhibition floor during the Nvidia GTC conference in San Jose, California on March 18.
Photographer: David Paul Morris/BloombergA data center developer is seeking $4.54 billion in junk-debt financing for an artificial intelligence project tied to Nvidia Corp., testing investor appetite after a recent surge in offerings.
An entity backed by asset manager Tract Capital Management LP and Fleet Data Centers I LP is selling the five-year notes, a person with direct knowledge of the matter said. Initial price talk is for a yield in the high 6% area, the person added, asking not to be identified while disclosing private information.