Broadcom Inc. (AVGO.US) secured a record-breaking $35 billion AI financing! Wall Street banks have entered the market, with the largest-ever private equity assets now up for sale.

Notice that major banks on Wall Street have started trading an initial portion of a $35 billion financing package for the expansion of AI infrastructure for Broadcom Inc. (AVGO.US) and Anthropic PBC. This also signals the largest private credit transaction ever is now opening up to a wider group of investors. According to sources, including Bank of America Corp and Morgan Stanley, multiple banks have been trading portions of the debt in the past week. These banks are part of a $24 billion joint sales team for the entire debt package. Other anonymous sources revealed that Apollo Global Management Inc has been pitching this debt to institutional investors. The company, in collaboration with Blackstone Inc., arranged the $35 billion financing package for the borrower, a Special Purpose Vehicle (SPV) responsible for purchasing custom chips developed by Alphabet Inc. Class C and Broadcom Inc., and leasing them to Anthropic. Based on bank trading quotes from sources, the takeover price for these bonds is between 100 cents and 100.5 cents on the dollar (i.e. discounted or slightly premium issued). This debt transaction reflects that as capital expenditure shows no signs of slowing down and tech companies are expanding their AI initiatives, financing for AI development is crossing over public and private credit markets or presenting a combination of both. The transaction adopts a drawdown model, allowing the borrower to draw funds as needed. Funds will be disbursed in approximately 16 tranches over a period of just over a year as the chips are delivered. Sources previously indicated that once portions of the debt are drawn, they can be traded in the 144a market, where qualified investors including insurance companies and mutual funds can buy and sell debt securities. Apollo launched its trading business at the end of 2024, and has been poaching talent from Wall Street banks to bolster its capabilities. By the end of the first quarter, the institution had traded $15 billion in private assets.