Key Takeaways
- • QTS, the data center operator owned by Blackstone Inc., is preparing a private placement of roughly $800 million to fund AI infrastructure, according to people familiar with the matter.
- • The notes would be issued through a special-purpose vehicle, QTS Thunder Managing Issuer LLC, with maturities that could range from seven to 15 years.
- • Mizuho, Natixis, Societe Generale SA and Wells Fargo & Co. are arranging the deal, and part of the proceeds is expected to refinance existing borrowings.
- • Pricing could come as early as the week of the report, per sources who requested anonymity because the details are confidential.
- • Blackstone acquired QTS in 2021 for $10 billion, and the operator has relied on multiple capital sources, including private placements typically bought by life insurance companies and asset managers.
Summary
QTS, the data center operator owned by Blackstone Inc., is preparing a private placement of about $800 million, according to Briefs Finance, citing people familiar with the matter who requested anonymity because the details are confidential. The securities will be issued through a special-purpose vehicle called QTS Thunder Managing Issuer LLC, and pricing could come as early as the week of the report.
The offering is part of a broader pattern in which Wall Street is reaching across global credit markets to fund artificial intelligence infrastructure. The notes may carry maturities between seven and 15 years. Mizuho Financial Group, Natixis, Societe Generale SA and Wells Fargo & Co. are leading the financing.
According to a person briefed on the plan, QTS is accessing the market partly to refinance some of its existing borrowings. QTS, Mizuho and Natixis did not respond to requests for comment, while Blackstone, Societe Generale and Wells Fargo declined to comment.
Blackstone acquired QTS in 2021 for $10 billion. Since then, the operator has tapped multiple capital sources while building data centers across the U.S. Private placements of this type are most often purchased by life insurance companies and asset managers, the report said.
The offering is part of a broader pattern in which Wall Street is reaching across global credit markets to fund artificial intelligence infrastructure. The notes may carry maturities between seven and 15 years. Mizuho Financial Group, Natixis, Societe Generale SA and Wells Fargo & Co. are leading the financing.
According to a person briefed on the plan, QTS is accessing the market partly to refinance some of its existing borrowings. QTS, Mizuho and Natixis did not respond to requests for comment, while Blackstone, Societe Generale and Wells Fargo declined to comment.
Blackstone acquired QTS in 2021 for $10 billion. Since then, the operator has tapped multiple capital sources while building data centers across the U.S. Private placements of this type are most often purchased by life insurance companies and asset managers, the report said.
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