Meta Names Multibillion-Dollar AI Debt Deals After Fried Dough Pastries
Tech giant Meta is raising capital for its $12 billion El Paso data center project through a bond offering, with the deal being managed via a special purpose vehicle named Sopaipilla Investor. This follows an earlier record-breaking $27 billion corporate bond sale in October 2025 for its Louisiana Hyperion data center under another SPV called Beignet Investor. Investors are now demanding higher yields—over 7% initially, with some pushing for even more—to offset the growing AI exposure and potential risks of an AI bubble. The El Paso project is expected to be secured by Meta's long-term rent payment agreement starting in 2028, offering bondholders additional protection. S&P Global has rated these bonds at A+, calling the structure robust despite concerns over rising borrowing costs for large tech firms funding their AI ambitions.
Topics: AI BlackRock bond issuance data centers Meta