Oracle Data Center Draws $14B Debt Interest From Bond Giant PIMCO: Report

• If finalized, the deal would make PIMCO a key backer of a Saline Township data center where Oracle Corporation aims to run applications for OpenAI.
• The funding may be structured as a bond offering, with PIMCO potentially distributing portions to other investors, according to the Bloomberg report.
• A spokesperson for Oracle told Bloomberg that the company is encouraged by the rapid progress in financing and development at the Saline Township site.

Oracle Corp. (ORCL) is reportedly garnering attention from investment management firm Pacific Investment Management Co. (PIMCO), which is considering financing a massive data center buildout in Michigan.

According to a report from Bloomberg, citing people familiar with the matter, PIMCO is in talks with Bank of America Corp. (BAC) to provide about $14 billion of debt financing to Oracle for the data center.

If completed, the deal would position PIMCO as a key financier of a data center campus in Saline Township, where Oracle Corporation plans to support applications for OpenAI.

The report comes amid other claims that Oracle and OpenAI shelved plans to expand their AI data center in Abilene, Texas due to collapsed negotiations over financing.

PIMCO’s Financing

The funding may be structured as a bond offering, with PIMCO potentially distributing portions to other investors, according to the Bloomberg report.

The proposed financing may be structured as a Rule 144A offering, a type of privately placed debt that can be traded among qualified institutional investors, as per the report.

However, Bloomberg also noted that talks for the financing were at an early stage, although PIMCO’s involvement added a new layer to the prolonged effort to secure financing for the project, which has drawn significant scrutiny from both Wall Street and local stakeholders.

Bank of America has reportedly spent months working to line up financing for Related Digital, the developer behind the project, while Blackstone Inc. is expected to add roughly $2 billion in equity.

A spokesperson for Oracle told Bloomberg that the company is encouraged by the rapid progress in financing and development at the Saline Township site, highlighting ongoing collaboration with OpenAI, Related Digital, and Bank of America.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around ORCL shares was in the ‘bearish’ territory at the time of writing amid ‘extremely low’ message volumes.

ORCL shares have declined more than 26% this year.

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