Data-Center Developer Sells $999M 9% Junk Bonds for 50MW SoftBank-Leased Facility
NMR priced $999 million of five-year junk bonds at roughly a 9% yield, marking the highest borrowing cost for a data-center deal this year. Proceeds will fund a 50 MW Austin facility fully leased under a 15-year contract to a SoftBank unit, featuring rent backstop guarantees from December.
1. Bond Deal Details
NMR issued $999 million of five-year bonds at roughly a 9% yield, marking the highest borrowing cost for a data-center-linked junk bond so far this year and exceeding earlier pricing discussions of low- to mid-8%.
2. Use of Proceeds and Lease Terms
Proceeds will fund construction of a 50-megawatt data center in Austin, Texas, fully leased under a 15-year contract to a SoftBank subsidiary, with lease rent backstop dates ensuring cash flow begins in December regardless of construction status.
3. AI Infrastructure Debt Market
The deal is part of a broader $28 billion of riskier bond issuances by AI infrastructure firms this year, yet investor fatigue is emerging after a $300 billion sector-wide debt binge and record deals from Alphabet, Nvidia, and Meta showing varied market reception.