Key Takeaways
- • Blackstone has told investors that Anthropic may receive a sub-investment-grade (junk) credit rating after its planned IPO, a shift from earlier expectations, according to the Financial Times.
- • Blackstone's funds have invested $9bn in the junior debt of Project North Star, a $63bn chip financing transaction, at a yield exceeding 10%.
- • Anthropic's prospectus outlines plans to spend more than $800bn on computing infrastructure through 2045.
- • A junk rating could restrict access to institutional capital from insurers and pension funds and increase Anthropic's reliance on guarantees from more highly rated suppliers.
Summary
Blackstone has signaled to investors that Anthropic may receive a sub-investment-grade credit rating once it completes its planned initial public offering, according to a report by the Financial Times. The private capital manager's revised outlook departs from earlier expectations and could raise the AI company's financing costs.
The communication was directed at investors in Project North Star, a $63bn chip financing transaction linked to Anthropic. Blackstone's funds have invested $9bn in the deal's junior debt at a yield above 10%. More than $42bn of the transaction's senior loans is guaranteed by Broadcom, while $18bn of junior debt is backed by Anthropic's lease payments.
The scale of the financing reflects Anthropic's infrastructure ambitions. The company's prospectus outlines plans to spend more than $800bn on computing infrastructure through 2045. A sub-investment-grade rating would restrict access to institutional capital, including from insurers and pension funds, and would likely increase Anthropic's reliance on guarantees from more highly rated suppliers.
The junior tranche has received ratings of BB+ from Kroll Bond Rating Agency and BB from Morningstar DBRS. Fitch, Moody's and S&P have not yet issued ratings for Anthropic itself, leaving the company's eventual standalone rating unresolved ahead of its IPO.
The communication was directed at investors in Project North Star, a $63bn chip financing transaction linked to Anthropic. Blackstone's funds have invested $9bn in the deal's junior debt at a yield above 10%. More than $42bn of the transaction's senior loans is guaranteed by Broadcom, while $18bn of junior debt is backed by Anthropic's lease payments.
The scale of the financing reflects Anthropic's infrastructure ambitions. The company's prospectus outlines plans to spend more than $800bn on computing infrastructure through 2045. A sub-investment-grade rating would restrict access to institutional capital, including from insurers and pension funds, and would likely increase Anthropic's reliance on guarantees from more highly rated suppliers.
The junior tranche has received ratings of BB+ from Kroll Bond Rating Agency and BB from Morningstar DBRS. Fitch, Moody's and S&P have not yet issued ratings for Anthropic itself, leaving the company's eventual standalone rating unresolved ahead of its IPO.
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