Oracle's $18B Project Jupiter Loans Trade at 89-91 Cents

Loans tied to Oracle's $18 billion Doña Ana data center are trading at 89 to 91 cents on the dollar, according to the Financial Times, as banks including Santander and Jefferies struggle to distribute the debt to a broader pool of investors.

The 1,400-acre campus, dubbed Project Jupiter, is a linchpin of Oracle's agreement with OpenAI to supply compute under the Stargate initiative. It secured the loan package late last year to kick-start construction. Efforts to sell the debt down have stalled amid concerns over Oracle's rising borrowing and weakening creditworthiness, per the FT, leaving syndicate banks "holding more of the debt than planned," Finimize wrote.

Oracle's corporate credit sits one notch above junk after an S&P downgrade in July. Its forecast points to roughly $95 billion of capital expenditure in fiscal 2027 against about $25 billion of expected customer repayments. That is the gap the paper is now trading on.

The site is also snagged on permits. The Green Chile Project, a 17-mile natural gas pipeline meant to feed Project Jupiter, has been delayed by nearly six months after the New Mexico State Land Office denied its permit for a second time, with the in-service date now pushed to February 1, 2027, The Next Web reports. Land Commissioner Stephanie Garcia Richard wrote that the project would bring "no significant benefits for state lands" and called the burden on New Mexico's water and natural resources "extreme," warning that approval would amount to "literally doubling down on dangerous emissions." The site was initially set to be powered by 2.2 gigawatts of gas turbines.

Oracle, Santander and Jefferies did not respond to Reuters requests for comment.