A data center developer is offering $999 million of junk bonds for a project leased to a SoftBank Group Corp. subsidiary, amid a favorable market environment for high-yield debt linked to technology. This deal, managed by Morgan Stanley and Nomura Holdings Inc., comes as junk bond issuances for U.S. data centers have surged, capitalizing on strong investor interest in artificial intelligence infrastructure. An investor call is scheduled for Wednesday to discuss the offering further.
SE Cosmos LLC: SE Cosmos LLC is a data center developer constructing facilities in Texas, including a 50 megawatt IT data center. It has acquired sites like a former 3M campus in Austin for redevelopment into AI-supporting infrastructure. SE Cosmos is marketing high-yield bonds to fund this project, which is leased to a SoftBank Group Corp. subsidiary.
Morgan Stanley: Morgan Stanley is a leading global investment bank offering capital markets and debt financing services. It has arranged multiple high-yield bond deals for data center projects backed by major tech firms. Morgan Stanley is co-managing the junk bond issuance for SE Cosmos LLC’s SoftBank-leased data center.
Nomura Holdings Inc.: Nomura Holdings Inc. is a prominent Japanese financial holding company providing investment banking and securities underwriting globally. It engages in debt capital markets transactions for infrastructure projects. Nomura is jointly leading the bond marketing for SE Cosmos LLC alongside Morgan Stanley.
SoftBank Group Corp.: SoftBank Group Corp. is a Japanese multinational conglomerate specializing in investments in artificial intelligence and digital infrastructure through subsidiaries like SB Energy. SB Energy focuses on developing powered data center sites with reliable grid-connected energy for AI and advanced computing. In this deal, a SoftBank subsidiary is the long-term lessee of the data center project being financed by SE Cosmos LLC’s junk bond offering.
Market Demand: High-yield debt deals for data center developments leased to tech giants continue to attract strong investor participation.
Financing Trend: Junk bond issuances for US data centers have surged to capitalize on investor interest in AI infrastructure exposure.
AI Infrastructure Push: Developers are funding expansions through debt markets as big tech firms secure capacity for AI computing needs.