$25 billion deal with $85 billion investor demand
NVIDIA issued a $25 billion bond deal. It got $85 billion of orders for the deal.
This is a strong data point showing high investor demand in the bond markets. In this case a very large issue from a high-grade issuer with no roadshow, a highly oversubscribed book, and very tight pricing – in significantly from initial price talk.
This high demand stems partly from high rates – which have resulted in high yields for investment grade bonds – even when credit spreads on those bonds are very low.
Deal details
The deal was upsized from $20 billion. It was split across 7 tranches – with maturities from 2 years to 30 years.
The bonds were rated Aa1/AA (Moody’s/S&P).
Bookrunners were Goldman Sachs, JP Morgan and Morgan Stanley.
The deal priced with very low spreads over treasuries. 20bps for the 2 year to 65bps for the 30 year.
The deal did not run a roadshow/investor calls – moving directly to book building.
Value for NVIDIA – cheap, long money
This deal secures a large amount of cheap, long-term funding for NVIDIA – at very low credit spreads.
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