Google-Backed $5.7B Junk Bond Sparks $6.7B AI Data Center Financing
Meridian Arc sold $5.7B of five-year high-yield bonds to fund two Indiana data centers leased to Fluidstack, priced at par with a 6.25% yield after $19B of orders. CoreWeave reopened $1B of 2031 bonds, lifting combined AI-focused junk debt sales to $6.7B on strong investor demand.
1. Record $5.7B AI Junk Bond Offering
The joint venture Meridian Arc HoldCo LLC, backed by entities linked to Alphabet and Fluidstack, sold $5.7 billion of five-year high-yield bonds to fund the construction of two Sullivan County, Indiana, data centers leased to Fluidstack, pricing at par with a 6.25% yield after $19 billion of investor orders. This issuance represents the largest US dollar high-yield bond sale tied to artificial intelligence and the biggest sole-led deal by Morgan Stanley.
2. CoreWeave's $1B Bond Reopening
One week after its initial sale, CoreWeave Inc. issued an additional $1 billion of 2031 bonds, tapping into robust investor appetite for AI infrastructure financing. The combined $6.7 billion in junk debt reflects surging demand for data-center capacity and continued investor confidence despite geopolitical tensions.