Anthropic Offers Blackstone a Yield Above 10% on Junior Debt in a Reported $60B 'Project North Star' TPU Financing, FT Says
The Financial Times reported, as summarised by Mint on Oct. 17, that Anthropic is raising about $60B through 'Project North Star' for about 1.5GW of Google TPUs, with Blackstone-managed funds taking $9B of an $18B junior tranche at a 10% coupon and total returns above 10%. About $42B of senior debt would be guaranteed by Broadcom. Single-origin; hedge.
Anthropic is paying a junk-style premium to lock in compute before its IPO, if the FT's sources are right. The Financial Times reported that Anthropic is raising about $60 billion through a vehicle called Project North Star to pay for about 1.5GW of Google TPUs, Mint summarised on Saturday, October 17, citing people familiar with the matter.
Blackstone-managed funds would take $9 billion of an $18 billion junior tranche backed by Anthropic's five-year lease payments, Mint says. The tranche carries a 10% coupon, and total returns exceed 10% after discounts and fees, against about 7% for similarly rated borrowers. The other $9 billion of junior debt is to be offered in coming months. About $42 billion of senior debt would be guaranteed by Broadcom. An earlier deal, Project Big Sky, raised about $4.4 billion at 8.5% four months earlier. KBRA rated Anthropic one notch below investment grade in June, Mint reports.
Limits
- Everything here traces to a single FT report, summarised by Mint. The FT original was only partly readable. Anthropic's comment is not recorded in Mint.