Blackstone has told investors that Anthropic may receive a sub-investment-grade credit rating after its planned IPO, revising earlier expectations and potentially raising the AI company’s financing costs, according to Private Equity Wire, citing a report by the Financial Times.
Blackstone communicated the revised outlook to investors in Anthropic’s $63bn chip financing transaction, Project North Star, according to Private Equity Wire.
Blackstone’s message to Project North Star investors
Blackstone’s funds have invested $9bn in Project North Star’s junior debt at a yield exceeding 10%, according to Private Equity Wire.
The publication reports that Blackstone told investors Anthropic may receive a sub-investment-grade rating after its planned IPO, and that this view represented a revision from earlier expectations.
Anthropic’s spending plan and the financing implications
Anthropic’s prospectus outlines plans to spend more than $800bn on computing infrastructure through 2045, according to Private Equity Wire.
Private Equity Wire reports that a junk rating could restrict access to institutional capital, including from insurers and pension funds, and could increase Anthropic’s reliance on guarantees from more highly rated suppliers.
Widely known context: sub-investment-grade credit ratings are often referred to as “junk” ratings in credit markets.
Credit support and current tranche ratings
More than $42bn of North Star’s senior loans is guaranteed by Broadcom, according to Private Equity Wire.
Private Equity Wire reports that $18bn of junior debt is backed by Anthropic’s lease payments.
The junior tranche has received ratings of BB+ from Kroll Bond Rating Agency and BB from Morningstar DBRS, according to Private Equity Wire.
Fitch, Moody’s and S&P have yet to issue ratings for Anthropic itself, according to Private Equity Wire.
