SoftBank-Linked Junk Bond Sale Raises $999M for 50MW Data Center; S&P 500 Profits to Jump 27.8% with Google Boost
A SoftBank-linked developer issued $999 million of five-year junk bonds at 9% yield to fund a 50MW Austin data center leased under a 15-year contract, marking the highest borrowing cost this year. S&P 500 profits are seen rising 27.8% in Q1, the strongest gain since 2021, as Google advances AI.
1. Junk Bond Deal for Austin Data Center
SE Cosmos LLC priced $999 million of five-year notes at a 9% yield to finance a 50MW data center in Austin, Texas, leased under a 15-year contract to a SoftBank subsidiary with rent backstops ensuring cash flow from December.
2. AI Infrastructure Bond Market Trends
Firms funding AI build-outs have raised about $28 billion from junk bonds this year, including a record $5.7 billion deal for Google-linked data centers, but investor appetite is waning after a $300 billion AI debt binge across credit markets.
3. S&P 500 Profit Outlook Boosted by Google
Analysts forecast S&P 500 profits rising 27.8% in Q1, the strongest quarterly growth since late 2021, driven in part by Alphabet’s Google delivering standout AI-driven results during a week of megacap earnings.