Banks Still Working Off Oracle's $38B AI Data-Center Loan

Lenders led by JPMorgan Chase and Mitsubishi UFJ Financial Group have spent more than six months syndicating the record $38 billion construction loan backing Oracle-leased data centers in Texas and Wisconsin. Bloomberg reports that after more than two dozen banks and investors joined, lenders are still looking to offload less than $1 billion, and some are now willing to sell pieces "to non-bank buyers at a discount, just to move it."

The package splits into a $23.25 billion facility for the Texas site and a $14.75 billion facility for Wisconsin, both developed by Vantage Data Centers and leased by Oracle as part of its Stargate commitment with OpenAI. The debt prices around 2.5 percentage points over the benchmark, matures in four years, and carries two one-year extension options.

Wells Fargo, BNP Paribas, Goldman Sachs, Sumitomo Mitsui and Societe Generale were allocated portions after the first round of underwriting. Oracle's corporate credit rating sits one notch above junk following a July S&P downgrade, which has done nothing to speed an arranger group still working through the last slug.

Among the 16 Oracle stories our team has logged in the last 90 days is a separate roughly $16 billion Vantage financing that reportedly required PIMCO to anchor $10 billion after US banks pulled back. The discount sales now circulating on this Texas and Wisconsin tranche are the price of getting the record deal close to the finish line.