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      JPMorgan and Goldman limit exposure to $5bn AI infrastructure loan

      JPMorgan Chase and Goldman Sachs have limited their underwriting exposure to a $5bn financing package for AI cloud company Volta Infrastructure Holdings, as investors demand higher returns on debt linked to artificial intelligence projects, according to a report by Bloomberg.

      The banks are arranging the financing but have underwritten only a $1.3bn term loan, leaving a separate $3.7bn loan backed by computer chips without a firm underwriting commitment, according to Bloomberg.

      The structure reduces the banks’ exposure to potential losses if investor demand falls short, reflecting increasing caution around large-scale financing for AI infrastructure.

      Volta’s debt is being marketed at a yield of approximately 11%, placing it among the more expensive leveraged loan transactions used to finance AI-related investments.

      The debt package is also unrated, potentially limiting participation by collateralised loan obligations, which are among the largest institutional buyers of leveraged loans.

      The financing is intended to support Volta’s AI infrastructure development, including a data centre project in Norway.


      Source: Private Equity Wire
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