All articles tagged with #debt financing
Alphabet, Amazon and Meta are leading a $660 billion AI infrastructure drive this year, funding chips and data centres with a mix of cash flow, debt and potential equity issues. The scale may outpace current cash generation, pressuring shareholders’ returns and prompting a surge in bond and equity issuances as analysts flag capital spending overhangs and funding risks.
EU countries reached a deal to issue a €90 billion loan to Ukraine for 2026–27, funded by joint debt and guaranteed by the EU budget, split into €30 billion in budgetary aid and €60 billion for military procurement, with the first tranche due in early April; Hungary, Slovakia and the Czech Republic are exempt from repayments, while the remaining 24 member states would contribute about €2–3 billion annually; purchases will follow a cascading “Made in Europe” rule prioritizing EU/EEA suppliers, with outside markets allowed if needed; anti-corruption safeguards apply and repayment would only occur if Russia ends its aggression and agrees to reparations; EU Parliament still needs to approve the texts.
Saks Global Enterprises is planning to file for Chapter 11 bankruptcy as soon as Sunday due to severe cash flow issues, despite advanced negotiations for a $1.25 billion debtor-in-possession financing package to keep the business operational during bankruptcy proceedings.
US GDP growth in Q3 was driven significantly by AI-related investment, with concerns about the sustainability of this growth as much of it relies on massive capital expenditure in AI data centers, funded increasingly by debt, raising questions about potential bubbles and long-term returns.
The AI boom is driving a surge in debt issuance by US utilities, with bond sales reaching a record $158 billion this year to fund infrastructure growth, potentially increasing investment risks despite the industry's regulated nature. Future investments are expected to rise, but concerns about an AI bubble and political risks could impact valuations and investor confidence.
U.S. stocks are experiencing volatility as AI-related stocks like Oracle, Broadcom, and CoreWeave decline due to concerns over high debt levels used to finance large deals, though broader markets remain relatively stable with sector rotations into consumer and industrial stocks.
CoreWeave reported strong Q3 revenue but lowered its 2025 guidance due to supply constraints, causing a 15% stock drop. Despite a net loss, the company has secured significant debt and expanded its AI cloud services, with analysts maintaining a neutral outlook and a revised price target of $140.
Italian tech firm Bending Spoons is acquiring AOL from Yahoo with a $2.8 billion debt package, aiming to expand its digital portfolio and invest in R&D and future M&A, marking a new chapter for the historic internet brand.
CoreWeave's stock dropped 12% due to concerns over its heavy spending and financing plans for expanding AI infrastructure, including significant debt and potential dilution from an upcoming stock lockup expiration, raising questions about its growth sustainability.
Rivian Automotive intends to raise approximately $15 billion in debt to support the construction of an electric vehicle manufacturing plant in Georgia. The company plans to purchase taxable bonds issued by the Georgia Department of Economic Development and the Joint Development Authority of Jasper, Morgan, Newton, and Walton Counties. Rivian has committed to paying a minimum of nearly $300 million in property tax payments until 2047, with the potential for increased payments if the carmaker surpasses its $5 billion investment. The new plant is expected to employ over 7,500 people and produce 400,000 vehicles annually.
Rivian Automotive intends to raise approximately $15 billion in debt to support the construction of an electric vehicle manufacturing plant in Georgia. The company plans to purchase taxable bonds issued by the Georgia Department of Economic Development and the Joint Development Authority of Jasper, Morgan, Newton, and Walton Counties. Rivian has committed to paying a minimum of nearly $300 million in property tax payments until 2047, with the potential for increased payments if the carmaker surpasses its $5 billion investment. The new plant is expected to employ over 7,500 people and produce 400,000 vehicles annually.
Pfizer has sold $31 billion of debt in the fourth-largest US bond sale ever, which will finance its purchase of Seagen Inc. The pharmaceutical giant raked in over $85 billion in orders for the eight-part investment-grade deal, making it the largest debt financing for a merger or acquisition this year. The bond sale comes amid a rush by companies to tap capital markets ahead of a potential jump in borrowing costs sparked by the US debt ceiling standoff. Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc. and JPMorgan Chase & Co. managed the sale.
Subway is exploring a sale for over $10 billion and a $5 billion debt plan could help make it happen. JPMorgan Chase & Co. has put forward a debt financing package to show buyout firms they can borrow enough to meet Subway’s $100 billion-plus valuation. Second-round bids for Subway came in last week from more than 10 private-equity firms including Bain Capital, TPG, Advent International Corp, TDR Capital, Goldman Sachs’s buyout arm and Roark Capital. Subway has been in the midst of a turnaround, which could help the company meet its $10 billion-plus valuation.
Subway's financial adviser, JPMorgan Chase & Co, has offered a $5 billion debt financing package to private equity firms bidding for the sandwich chain, hoping to secure a sale price of over $10 billion. Rising interest rates and concerns about an economic slowdown have made debt more expensive and less available for buyout firms, affecting the amount they are willing to offer. Second-round bids for Subway have come in from over 10 private-equity firms, including Bain Capital, TPG, Advent International Corp, TDR Capital, Goldman Sachs's buyout arm, and Roark Capital. Subway is allowing bidders to use any financing route they want, as long as they can secure committed financing.
Subway's financial adviser, JPMorgan Chase & Co, has offered a $5 billion debt financing package to private equity firms bidding for the sandwich chain, hoping to secure a sale price of over $10 billion. The debt financing is based on a mix of loans and bonds and is equivalent to 6.75 times Subway's 12-month earnings before interest, taxes, depreciation and amortization of about $750 million. Second-round bids for Subway came in last week from more than 10 private-equity firms, including Bain Capital, TPG Inc, Advent International Corp, TDR Capital, Goldman Sachs Group Inc's buyout arm and Roark Capital.