Latest news with #JohnMedina
The Star
13 hours ago
- Business
- The Star
Meta's deal marks key moment for private credit
NEW YORK: The heavy hitters of private credit have been waiting for this moment for years. Major lenders, which often cater to companies with dented credit, talk endlessly about the opportunities in investment-grade debt and in financing the breakneck growth of artificial intelligence (AI). They've done smaller deals, but last week they caught the biggest fish yet: a US$29bil financing package for Meta Platforms Inc's massive data centre in Louisiana. That transaction, led by Pacific Investment Management Co (Pimco) and Blue Owl Capital Inc, hits all the high notes: It's a top-notch business in a hot sector. It disrupts the usual route that companies like Meta travel to get money from investors through banks. And, it's huge. 'Private credit has been itching to get into this space,' said John Medina, senior vice-president on the global project and infrastructure finance team at Moody's Ratings. 'This deal is one of the first of its kind for private credit and if it is successful, we would expect to see more.' The biggest technology companies are in an AI arms race now, and they need cash to win. Elon Musk's xAI Corp recently told investors it plans to spend US$18bil on data centres, and is looking at raising debt backed by projects rather than at the corporate level. Others including Inc and OpenAI Inc are pursuing their own sites across the United States. Morgan Stanley estimates that capital expenditures on AI could exceed US$3 trillion in the next three years. For Meta, Pimco is leading US$26bil in debt and Blue Owl is providing US$3bil in equity. Bidding war The debt portion is likely to be issued in the form of investment-grade bonds backed by the data centre's assets, people familiar with the matter said, adding that the final structure is still in flux. Morgan Stanley is advising Meta on the deal and arranging the financing. The bidding war for the financing lasted months. It was competitive because private credit firms have been all-but-begging for access to the investment-grade debt world that banks dominate. Other private-credit firms that grappled for the top spot include Apollo Global Management Inc and KKR & Co, which made it to the final round, as well as Brookfield Asset Management Ltd, Blackstone Inc and Ares Management Corp, said the people, who were not authorised to speak publicly. It is the largest funding package related to a specific AI data centre by a mile, with others involving xAI Corp or Coreweave Inc well below US$10bil. Microsoft Inc, BlackRock Inc and the United Arab Emirates' MGX investment vehicle are teaming up to raise US$30bil of private equity that can be leveraged to US$100bil, with Nvidia Corp and xAI also joining in, but that money is for a series of data warehouses and energy infrastructure rather than an individual project. The most recent debt deal of any kind that's even near the size of Meta's was a US$26bil bond sale to support Mars Inc's purchase of rival food-maker Kellanova in March. A group of banks put together the financing, which was funnelled through to their typical investors in the syndicated market. Dry powder Private-credit firms have about US$450bil of dry powder to invest, according to Preqin data, and are clamouring for this kind of business. The corporate acquisitions that often fuel private-credit deals are practically at a standstill. And these firms aspire to more fully become rivals to traditional Wall Street banks – handling everything from advising companies to structuring their debt to providing some of it themselves. Massive market Expanding further into investment-grade deals could help make private credit a US$40 trillion market, according to an estimate from Apollo. 'This ecosystem of private investment-grade is a massive market with a huge tailwind,' Michael Zawadzki, the global chief investment officer at Blackstone's credit and insurance unit, said last year. Representatives for Apollo, Meta, Pimco, Blue Owl, Brookfield, Blackstone, Ares and Morgan Stanley declined to comment. Those for KKR and xAI didn't immediately respond to requests for comment. KKR and Energy Capital Partners last year agreed to a US$50bil partnership to accelerate the development of infrastructure for AI. Blue Owl has helped finance AI infrastructure before, including through a US$15bil joint venture for a data centre in Abilene, Texas. Blue Owl chief executive officer Marc Lipschultz has compared the AI craze to the Gold Rush: though lenders aren't out there digging for treasure, they can provide the 'picks and shovels' that technology firms need. 'In this case, it takes the modern version, the data centres,' he said during a conference call on July 31. 'And we are the best placed firm to help develop and to help fund those data centres.' — Bloomberg
Business Times
a day ago
- Business
- Business Times
Meta's US$29 billion deal marks pivotal moment for private credit
[LOS ANGELES] The heavy hitters of private credit have been waiting for this moment for years. Major lenders, which often cater to companies with dented credit, talk endlessly about the opportunities in investment-grade debt and in financing the breakneck growth of artificial intelligence (AI). They've done smaller deals, but this week they caught the biggest fish yet: a US$29 billion financing package for Meta Platforms' massive data centre in Louisiana. That transaction, led by Pacific Investment Management and Blue Owl Capital, hits all the high notes: It's a top-notch business in a hot sector. It disrupts the usual route that companies like Meta travel to get money from investors through banks. And, it's huge. 'Private credit has been itching to get into this space,' said John Medina, senior vice-president on the global project and infrastructure finance team at Moody's Ratings. 'This deal is one of the first of its kind for private credit and if it is successful, we would expect to see more.' The biggest technology companies are in an AI arms race now, and they need cash to win. Elon Musk's xAI recently told investors it plans to spend US$18 billion on data centres, and is looking at raising debt backed by projects rather than at the corporate level. Others including and OpenAI are pursuing their own sites across the US. Morgan Stanley estimates that capital expenditures on AI could exceed US$3 trillion in the next three years. For Meta, Pimco is planning to arrange US$26 billion in debt and Blue Owl is providing US$3 billion in equity. The debt portion is likely to be issued in the form of investment-grade bonds backed by the data centre's assets, people familiar with the matter said, adding that the final structure is still in flux. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The bidding war for the financing lasted months. It was competitive because private credit firms have been all-but-begging for access to the investment-grade debt world that banks dominate. Other private credit firms that grappled for the top spot include Apollo Global Management and KKR & Co, which made it to the final round, as well as Brookfield Asset Management, Blackstone and Ares Management, said the people, who were not authorised to speak publicly. Morgan Stanley advised Meta on the deal but isn't leading the financing. It is the largest funding package related to a specific AI data centre by a mile, with others involving xAI or Coreweave well below US$10 billion. Microsoft, BlackRock and the United Arab Emirates' MGX investment vehicle are teaming up to raise US$30 billion of private equity that can be leveraged to US$100 billion, with Nvidia and xAI also joining in, but that money is for a series of data warehouses and energy infrastructure rather than an individual project. The most recent debt deal of any kind that's even near the size of Meta's was a US$26 billion bond sale to support Mars' purchase of rival food-maker Kellanova in March. A group of banks put together the financing, which was funnelled through to their typical investors in the syndicated market. Dry powder Private credit firms have about US$450 billion of dry powder to invest, according to Preqin data, and are clamouring for this kind of business. The corporate acquisitions that often fuel private credit deals are practically at a standstill. And these firms aspire to more fully become rivals to traditional Wall Street banks – handling everything from advising companies to structuring their debt to providing some of it themselves. Expanding further into investment-grade deals could help make private credit a US$40 trillion market, according to an estimate from Apollo. 'This ecosystem of private investment-grade is a massive market with a huge tailwind,' Michael Zawadzki, global chief investment officer at Blackstone's credit and insurance unit, said last year. Representatives for Apollo, Meta, Pimco, Blue Owl, Brookfield, Blackstone, Ares and Morgan Stanley declined to comment. Those for KKR and xAI didn't immediately respond to requests for comment. KKR and Energy Capital Partners last year agreed to a US$50 billion partnership to accelerate the development of infrastructure for artificial intelligence. Blue Owl chief executive Marc Lipschultz has compared the AI craze to the Gold Rush: though lenders aren't out there digging for treasure, they can provide the 'picks and shovels' that technology firms need. 'In this case, it takes the modern version, the data centres,' he said during a conference call on Jul 31. 'And we are the best-placed firm to help develop and to help fund those data centres.' BLOOMBERG
Los Angeles Times
2 days ago
- Business
- Los Angeles Times
Meta's $29 Billion deal marks key moment for private credit
The heavy hitters of private credit have been waiting for this moment for years. Major lenders, which often cater to companies with dented credit, talk endlessly about the opportunities in investment-grade debt and in financing the breakneck growth of artificial intelligence. They've done smaller deals, but this week they caught the biggest fish yet: a $29 billion financing package for Meta Platforms Inc.'s massive data center in Louisiana. That transaction, led by Pacific Investment Management Co. and Blue Owl Capital Inc., hits all the high notes: It's a top-notch business in a hot sector. It disrupts the usual route that companies like Meta travel to get money from investors through banks. And, it's huge. 'Private credit has been itching to get into this space,' said John Medina, senior vice president on the global project and infrastructure finance team at Moody's Ratings. 'This deal is one of the first of its kind for private credit and if it is successful, we would expect to see more.' The biggest technology companies are in an AI arms race now, and they need cash to win. Elon Musk's xAI Corp. recently told investors it plans to spend $18 billion on data centers, and is looking at raising debt backed by projects rather than at the corporate level. Others including Inc. and OpenAI Inc. are pursuing their own sites across the US. Morgan Stanley estimates that capital expenditures on AI could exceed $3 trillion in the next three years. For Meta, Pimco is leading $26 billion in debt and Blue Owl is providing $3 billion in equity. The debt portion is likely to be issued in the form of investment-grade bonds backed by the data center's assets, people familiar with the matter said, adding that the final structure is still in flux. Morgan Stanley is advising Meta on the deal and arranging the financing. The bidding war for the financing lasted months. It was competitive because private credit firms have been all-but-begging for access to the investment-grade debt world that banks dominate. Other private credit firms that grappled for the top spot include Apollo Global Management Inc. and KKR & Co., which made it to the final round, as well as Brookfield Asset Management Ltd., Blackstone Inc. and Ares Management Corp., said the people, who were not authorized to speak publicly. It is the largest funding package related to a specific AI data center by a mile, with others involving xAI Corp. or Coreweave Inc. well below $10 billion. Microsoft Inc., BlackRock Inc. and the United Arab Emirates' MGX investment vehicle are teaming up to raise $30 billion of private equity that can be leveraged to $100 billion, with Nvidia Corp. and xAI also joining in, but that money is for a series of data warehouses and energy infrastructure rather than an individual project. The most recent debt deal of any kind that's even near the size of Meta's was a $26 billion bond sale to support Mars Inc.'s purchase of rival food-maker Kellanova in March. A group of banks put together the financing, which was funneled through to their typical investors in the syndicated market. Dry Powder Private credit firms have about $450 billion of dry powder to invest, according to Preqin data, and are clamoring for this kind of business. The corporate acquisitions that often fuel private credit deals are practically at a standstill. And these firms aspire to more fully become rivals to traditional Wall Street banks — handling everything from advising companies to structuring their debt to providing some of it themselves. Expanding further into investment-grade deals could help make private credit a $40 trillion market, according to an estimate from Apollo. 'This ecosystem of private investment-grade is a massive market with a huge tailwind,' Michael Zawadzki, the global chief investment officer at Blackstone's credit and insurance unit, said last year. Representatives for Apollo, Meta, Pimco, Blue Owl, Brookfield, Blackstone, Ares and Morgan Stanley declined to comment. Those for KKR and xAI didn't immediately respond to requests for comment. KKR and Energy Capital Partners last year agreed to a $50 billion partnership to accelerate the development of infrastructure for artificial intelligence. Blue Owl has helped finance AI infrastructure before, including through a $15 billion joint venture for a data center in Abilene, Texas. Blue Owl Chief Executive Officer Marc Lipschultz has compared the AI craze to the Gold Rush: though lenders aren't out there digging for treasure, they can provide the 'picks and shovels' that technology firms need. 'In this case, it takes the modern version, the data centers,' he said during a conference call on July 31. 'And we are the best placed firm to help develop and to help fund those data centers.' --With assistance from Laura Benitez and Kurt Wagner. Arroyo and Fishlow write for Bloomberg.
Mint
2 days ago
- Business
- Mint
Meta's $29 Billion Deal Marks Pivotal Moment for Private Credit
(Bloomberg) -- The heavy hitters of private credit have been waiting for this moment for years. Major lenders, which often cater to companies with dented credit, talk endlessly about the opportunities in investment-grade debt and in financing the breakneck growth of artificial intelligence. They've done smaller deals, but this week they caught the biggest fish yet: a $29 billion financing package for Meta Platforms Inc.'s massive data center in Louisiana. That transaction, led by Pacific Investment Management Co. and Blue Owl Capital Inc., hits all the high notes: It's a top-notch business in a hot sector. It disrupts the usual route that companies like Meta travel to get money from investors through banks. And, it's huge. 'Private credit has been itching to get into this space,' said John Medina, senior vice president on the global project and infrastructure finance team at Moody's Ratings. 'This deal is one of the first of its kind for private credit and if it is successful, we would expect to see more.' The biggest technology companies are in an AI arms race now, and they need cash to win. Elon Musk's xAI Corp. recently told investors it plans to spend $18 billion on data centers, and is looking at raising debt backed by projects rather than at the corporate level. Others including Inc. and OpenAI Inc. are pursuing their own sites across the US. Morgan Stanley estimates that capital expenditures on AI could exceed $3 trillion in the next three years. For Meta, Pimco is planning to arrange $26 billion in debt and Blue Owl is providing $3 billion in equity. The debt portion is likely to be issued in the form of investment-grade bonds backed by the data center's assets, people familiar with the matter said, adding that the final structure is still in flux. The bidding war for the financing lasted months. It was competitive because private credit firms have been all-but-begging for access to the investment-grade debt world that banks dominate. Other private credit firms that grappled for the top spot include Apollo Global Management Inc. and KKR & Co., which made it to the final round, as well as Brookfield Asset Management Ltd., Blackstone Inc. and Ares Management Corp., said the people, who were not authorized to speak publicly. Morgan Stanley advised Meta on the deal but isn't leading the financing. It is the largest funding package related to a specific AI data center by a mile, with others involving xAI Corp. or Coreweave Inc. well below $10 billion. Microsoft Inc., BlackRock Inc. and the United Arab Emirates' MGX investment vehicle are teaming up to raise $30 billion of private equity that can be leveraged to $100 billion, with Nvidia Corp. and xAI also joining in, but that money is for a series of data warehouses and energy infrastructure rather than an individual project. The most recent debt deal of any kind that's even near the size of Meta's was a $26 billion bond sale to support Mars Inc.'s purchase of rival food-maker Kellanova in March. A group of banks put together the financing, which was funneled through to their typical investors in the syndicated market. Private credit firms have about $450 billion of dry powder to invest, according to Preqin data, and are clamoring for this kind of business. The corporate acquisitions that often fuel private credit deals are practically at a standstill. And these firms aspire to more fully become rivals to traditional Wall Street banks — handling everything from advising companies to structuring their debt to providing some of it themselves. Expanding further into investment-grade deals could help make private credit a $40 trillion market, according to an estimate from Apollo. 'This ecosystem of private investment-grade is a massive market with a huge tailwind,' Michael Zawadzki, the global chief investment officer at Blackstone's credit and insurance unit, said last year. Representatives for Apollo, Meta, Pimco, Blue Owl, Brookfield, Blackstone, Ares and Morgan Stanley declined to comment. Those for KKR and xAI didn't immediately respond to requests for comment. KKR and Energy Capital Partners last year agreed to a $50 billion partnership to accelerate the development of infrastructure for artificial intelligence. Blue Owl CEO Marc Lipschultz has compared the AI craze to the Gold Rush: though lenders aren't out there digging for treasure, they can provide the 'picks and shovels' that technology firms need. 'In this case, it takes the modern version, the data centers,' he said during a conference call on July 31. 'And we are the best placed firm to help develop and to help fund those data centers.' --With assistance from Laura Benitez and Kurt Wagner. More stories like this are available on
Malaysian Reserve
22-05-2025
- Business
- Malaysian Reserve
First Federal Bank Facilitates Three Rivers Legal Services Grant
LAKE CITY, Fla., May 22, 2025 /PRNewswire/ — Three Rivers Legal Services, Inc. (TRLS), in partnership with First Federal Bank (FFB), was awarded an Heirs Property Family Wealth Protection Fund grant from the Federal Home Loan Bank of Atlanta (FHLB Atlanta), for the purpose of providing free legal services regarding heirs property and estate planning to 'homeowners' of North Florida. Homeowners who reside in the counties of Alachua, Baker, Bradford, Columbia, Dixie, Gilchrist, Hamilton, Lafayette, Levy, Suwannee, Taylor or Union, and have household incomes below 120% of the Area Median Income, will be eligible to apply for legal services related to heirs property and estate planning. Residents whose homes were damaged as the result of Hurricanes Idalia, Debby or Helene will be given priority for full representation. 'TRLS helps individuals and their families navigate complex scenarios,' says John Medina, President and CEO of First Federal Bank. 'First Federal Bank is honored to help facilitate access to legal services to these deserving homeowners.' 'Heirs property' is real property that is currently titled in the name of a deceased individual, regardless of whether the homeowner had a Will at the time of their death. TRLS will provide legal representation in probate matters to the heir(s) of the property in an effort to have the property legally titled in the name of the resident heir. These clients, along with homeowners who already possess clear title to their homes, will be eligible to apply for legal services related to Estate Planning (wills and deeds) in an effort to prevent future heirs property issues. 'TRLS is grateful to First Federal Bank and FHLB Atlanta for the funding, which will allow TRLS to serve more clients in the designated counties' says Donna MacRae, Executive Director of Three Rivers Legal Services. For more information on how to help Three Rivers Legal Services, visit About First Federal Bank: First Federal Bank is a leading financial institution committed to serving the needs of its customers and communities. With banking locations in northern Florida and coastal South Carolina, First Federal Bank is a community-owned bank that provides a wide range of consumer and commercial banking solutions, services, and loans. Additionally, SBA and USDA customers are served by lending offices across the Southeast and Midwest, and mortgages are offered nationwide. With over $3.9 billion in assets, First Federal is headquartered in Lake City, Florida and has a steadfast focus on innovation and customer satisfaction. For over 20 years the bank has consistently been recommended by BauerFinancial, Inc. Furthermore, Newsweek named First Federal the 'Best Small Bank in Florida' for four consecutive years from 2020 to 2023 and 'Best Regional Bank' for 2024 and 2025. To learn more, visit the website at About Three Rivers Legal Services: Three Rivers Legal Services, Inc. (TRLS) is a non-profit law firm that provides free legal services to low-income or otherwise disadvantaged individuals and families in North Florida. Services include advice and consultation, brief services (drafting legal documents), negotiation, and full representation in court and/or administrative cases. TRLS services are limited to civil legal matters, including but not limited to probate, estate planning, housing law, consumer law, family law, public benefits (Social Security, SSI, Medicaid), elder law, sealing and expungement of criminal records, and education law. To learn more visit
