{"slug": "blackrock-dodges-ai-bond-flop-as-12-3-billion-debt-deal-rallies", "title": "BlackRock Dodges AI Bond Flop as $12.3 Billion Debt Deal Rallies", "summary": "Bonds tied to a Meta Platforms Inc. data center project in Texas, sold by BlackRock Inc., rallied in early trading on Monday before formal pricing, signaling stronger demand than initially appeared for the $12.3 billion debt offering. The bonds, issued by Sopaipilla Investor, were quoted at a yield of about 2.6 percentage points over Treasuries, tighter than the launch level of 2.875 percentage points, after syndication demand reached $20 billion, or 1.6 times the offering size, below the average of four times for bond sales this year.", "body_md": "(Bloomberg) -- Bonds that BlackRock Inc. is selling, tied to a Meta Platforms Inc. data center project in Texas, rallied in early trading on Monday before the notes were formally priced, signaling demand for the securities may be stronger than it initially appeared.\n\nMost Read from Bloomberg\n\n-\n[S&P 500 Wobbles as AI Angst Offsets Oil Decline: Markets Wrap](https://www.bloomberg.com/news/articles/2026-07-26/oil-tumbles-as-us-and-iran-pause-military-strikes-markets-wrap?utm_campaign=bn&utm_medium=distro&utm_source=yahooUS) -\n[China Chipmaker CXMT Jumps 466% in Debut After Blockbuster IPO](https://www.bloomberg.com/news/articles/2026-07-26/china-memory-champion-cxmt-set-to-debut-after-9-8-billion-ipo?utm_campaign=bn&utm_medium=distro&utm_source=yahooUS) -\n[SpaceX at $100 Would Imply Zero AI Value, Morgan Stanley Says](https://www.bloomberg.com/news/articles/2026-07-24/spacex-at-100-would-imply-zero-ai-value-says-morgan-stanley?utm_campaign=bn&utm_medium=distro&utm_source=yahooUS)\n\nBlackRock is due to price a $12.3 billion debt offering tied to a Meta data center project in El Paso, Texas. JPMorgan Chase & Co. and Morgan Stanley are managing the sale.\n\nIn the \"gray market,\" where bonds can be bought and sold before official trading begins, the debt was quoted at a yield of around 2.6 percentage point more than Treasuries, according to people with knowledge of the matter, tighter than the launch level of 2.875 percentage points.\n\nDemand for bonds from Sopaipilla Investor, a holding company tied to BlackRock that holds an 80% stake in the data center project, looked soft during syndication, reaching a final $20 billion on Friday, or just 1.6 times the amount of bonds for sale. The average demand for bond sales this year was closer to four times the size of the offering, according to data compiled by Bloomberg News.\n\nA flood of jumbo-sized debt sales by technology firms has stretched investors' ability to absorb the supply, eroding appetite for new AI-related bonds. A recent selloff in tech bonds more generally has also made investors wary as some companies like Alphabet boost their spending plans and potentially look to sell more debt to fund that.\n\nBut the securities were sold at a relatively high yield for money managers, one more common among junk bonds even though the securities are expected to carry investment-grade ratings, which might explain Monday's rally. When the bonds officially launched on Monday, typically a process at which final pricing is locked in, the deal offered a premium of about 0.4 percentage point to where a Beignet note due in 2049 trades. The Beignet security was sold last year to help finance a Meta data center in Louisiana.\n\nOther factors that can impact how bonds trade include the type of investor who buys the debt, and how soon they typically sell the bonds to make a quick profit.\n\nFor the credit market, it's a marked contrast to some recent bond flops from companies including SpaceX. Bond traders were stunned and investors faced significant paper losses after its debut high-grade bond deal was sold in June and traded off in the secondary market.", "url": "https://wpnews.pro/news/blackrock-dodges-ai-bond-flop-as-12-3-billion-debt-deal-rallies", "canonical_source": "https://ca.finance.yahoo.com/news/blackrock-dodges-ai-bond-flop-211813215.html", "published_at": "2026-07-27 21:18:13+00:00", "updated_at": "2026-07-27 22:53:13.113528+00:00", "lang": "en", "topics": ["ai-infrastructure"], "entities": ["BlackRock Inc.", "Meta Platforms Inc.", "JPMorgan Chase & Co.", "Morgan Stanley", "Sopaipilla Investor", "SpaceX"], "alternates": {"html": "https://wpnews.pro/news/blackrock-dodges-ai-bond-flop-as-12-3-billion-debt-deal-rallies", "markdown": "https://wpnews.pro/news/blackrock-dodges-ai-bond-flop-as-12-3-billion-debt-deal-rallies.md", "text": "https://wpnews.pro/news/blackrock-dodges-ai-bond-flop-as-12-3-billion-debt-deal-rallies.txt", "jsonld": "https://wpnews.pro/news/blackrock-dodges-ai-bond-flop-as-12-3-billion-debt-deal-rallies.jsonld"}}