Broadcom's $35B AI Credit Facility Nears Trading with Apollo, Blackstone Backing
AVGO•Broadcom's $35 billion AI credit facility, underwritten by Apollo Global Management, Blackstone and Goldman Sachs, is poised to begin secondary trading after closing syndication this week. It comprises a 364-day tranche and a three-year term loan to finance capacity expansion of AI-focused chip production.
1. Credit Deal Structure
Broadcom secured a $35 billion unsecured credit facility split into a 364-day tranche and a three-year term tranche, exclusively arranged by Apollo Global Management, Blackstone and Goldman Sachs. Syndication closed this week with demand exceeding initial guidance, paving the way for secondary trading to commence shortly.
2. Funding Implications
Proceeds will fund Broadcom’s ramp-up of AI-focused chip production by covering equipment purchases and capacity expansions. The deal’s scale and structure underscore confidence in Broadcom’s AI growth trajectory and may influence its borrowing costs in upcoming quarters.
