Bank of America Leads $14B Financing for Oracle Data Center with Pimco
Bank of America is in talks to arrange $14 billion in debt financing alongside Pimco for Oracle’s Michigan data center, structuring private 144A bonds and hosting a $2 billion Blackstone equity contribution. Investors also see most downside for the bank priced in ahead of Q1, shifting focus to earnings durability.
1. Talks with Pimco for $14B Financing
Bank of America has spent months negotiating alongside Pimco to assemble roughly $14 billion of debt financing for Oracle’s Saline Township data center project aimed at powering OpenAI applications.
2. Bond Structure and Syndication
The planned financing is expected to use a 144A bond format, enabling private placement to institutional buyers, with Pimco underwriting the issuance and potentially syndicating portions to other investors.
3. Blackstone Equity Role
Equity partner Blackstone will contribute $2 billion to the Related Digital development, enhancing the project’s capital structure and aligning sponsor and lender interests in the data center campus.
4. Strategic Impact on Bank of America
Participation in this large-scale data center financing underscores Bank of America’s growing footprint in private credit, potentially boosting fee income, diversifying its lending portfolio, and replicating its recent Meta data center deal success.