Broadcom (AVGO.US) landed a record $35 billion in AI financing! Major Wall Street banks enter the market and launch the largest private equity credit asset in history

The Zhitong Finance App notes that major Wall Street banks have begun trading the initial portion of a $35 billion financing plan to expand the AI infrastructure of AVGO.US (AVGO.US) and Anthropic PBC. It also means that the largest private credit deal in history is now open to a wider range of investors.

According to people familiar with the matter, a number of banks, including Bank of America and Morgan Stanley, have been trading some claims over the past week. In the overall debt package, these banks are members of a $24 billion joint dropshipping team.

Also, according to other anonymous sources familiar with the matter, Apollo Global Management has also been promoting this debt to institutional investors. The company partnered with Blackstone to arrange this $35 billion financing package for borrowers. The borrower is a special purpose entity (SPV) responsible for purchasing custom chips developed by Google and Broadcom and leasing them to Anthropic.

According to bank transaction quotes revealed by people familiar with the matter, the takeover price of these bonds is between 100 cents and 100.5 cents of face value (that is, issued at a discount or a slight premium).

This debt deal reflects that as capital spending shows no signs of slowing down and technology companies compete to expand their AI deployment, financing for artificial intelligence construction is crossing open and private credit markets, or showing a combination of the two.

The transaction uses an instalment withdrawal model, where borrowers can withdraw funds when they need them. As the chips gradually arrive, the funds will be distributed in about 16 batches over a period of more than a year.

Sources previously said that once part of the debt has been withdrawn, it can be traded on the 144a market, where qualified investors, including insurance companies and mutual funds, can trade debt securities.

Apollo launched its trading business at the end of 2024 and has been digging from Wall Street banks to expand its strength. By the end of the first quarter, the agency had traded $15 billion in private assets.