Led by Apollo and Blackstone
Apollo and Blackstone are working to being more investors into a $36 billion private credit deal that would be used to buy specialist AI chips that would be used by Anthropic.
Credit enhancement through an RV agreement with Broadcom
Broadcom (rated A-) is providing credit support in the form of a residual value support agreement.
The deal is reported to be provisionally structured as three tranches of notes – two senior tranches totalling $31 billion (which benefit from the Broadcom residual value backstop) and a $4.5 billion junior tranche.
A private credit milestone
The size, complexity, and distribution of this deal mark a significant milestone in the development of the private credit markets.