Broadcom Targets $35 Billion Credit from Blackstone; Gray Meets NYC Mayor on Taxes
Broadcom is negotiating a $35 billion private credit facility with Blackstone and Apollo to fund AI chip development, raising its total debt to $100 billion while maintaining leverage near 2× Net Debt/EBITDA. New York City Mayor Zohran Mamdani also met with Blackstone President Jonathan Gray over tax proposals.
1. Private Credit Negotiations
Blackstone has entered discussions with Broadcom and Apollo to arrange a $35 billion private credit facility aimed at supporting Broadcom’s AI chip development program. The funding would be underwritten alongside Apollo and, if completed, would expand Blackstone’s private credit platform significantly.
2. Leverage and Growth Implications
If the facility closes, Broadcom’s total debt would rise to roughly $100 billion, yet analysts project Net Debt/EBITDA leverage near 2× given Broadcom’s 54.5% year-over-year EBITDA growth. Blackstone anticipates generating substantial fee income and interest yield from structured credit arrangements.
3. NYC Tax Meeting with Gray
New York City Mayor Zohran Mamdani met with Blackstone President Jonathan Gray as part of broader outreach supporting higher taxes on the wealthy. Proposed levies, including a new pied-à-terre tax, could introduce regulatory headwinds for Blackstone’s real estate holdings and urban development projects.