Pimco is reportedly planning to sell a portion of its $14 billion debt financing stake in Oracle Corporation's (ORCL.US) data center.

According to sources, the Pacific Investment Management Company (Pimco) is planning to sell part of its $14 billion debt financing for Oracle Corporation's construction of a large data center in Michigan. Sources revealed that the campus in Saline Township will receive $16.3 billion in financing, with approximately 15% provided in the form of equity investments. The remaining portion will be raised through the issuance of bonds by a special purpose company. Reports indicate that Pimco will be responsible for providing funding support, with the transaction expected to be completed by April 17. Earlier reports suggest that Blackstone Inc. also plans to make an additional $2 billion equity investment. Documents show that the maturity period of these bonds is 19.5 years, with a weighted average term of 14 years, expected to provide potential supporters with a yield about 1 percentage point higher than the existing debt yield for Oracle Corporation. For Pimco, this would be the second time within the past year that they have provided significant financing for data centers, helping the investment management company further expand in the private credit sector. Last year, Pimco agreed to collaborate with BlueOwlCapitalInc. to provide financing for Meta Platforms Inc.'s Hyperion data center project in the Richland Parish of Louisiana. As the lead financing party for this transaction, Pimco held $18 billion in debt at the time of pricing. Subsequently, with the rise in debt prices, the company quickly gained $2 billion in book profits.