The Bloomberg source is more informative with respect to the financing (https://archive.ph/5WGcA)
> Blue Owl Capital Inc. and Meta will split ownership of the Hyperion data center site in Richland Parish, Louisiana, with the tech giant retaining just 20% of it, according to people with knowledge of the matter. To finance the build-out, Morgan Stanley arranged over $27 billion of debt and about $2.5 billion of equity into a special purpose vehicle
At 225 over (current?) treasuries:
> The bonds priced at about 225 basis points over Treasuries,
The sums being thrown around right now are just staggering. All the money that is being leveraged for AI these days is going to absolutely crush some unlucky sods somewhere. All these massive deals can’t all succeed.
Louisiana residents better expect higher energy costs soon as well that’s for sure. No way entergy is content eating the costs of these investments and the state basically has an allergy to taxing or in any way financially inconveniencing companies.
The way things typically go in LA the only guarantee is the residents will be on the losing end in some form or fashion (also many politicians are probably skimming off plenty for themselves and their buddies). Especially with Landry at the helm.
> Blue Owl Capital Inc. and Meta will split ownership of the Hyperion data center site in Richland Parish, Louisiana, with the tech giant retaining just 20% of it, according to people with knowledge of the matter. To finance the build-out, Morgan Stanley arranged over $27 billion of debt and about $2.5 billion of equity into a special purpose vehicle
At 225 over (current?) treasuries:
> The bonds priced at about 225 basis points over Treasuries,