Pacific Investment Management Co. is seeking to sell a portion of the roughly $14 billion of debt it is underwriting for Oracle’s sprawling data‑center project in Saline Township, Michigan, according to people familiar with the transaction and documents reviewed by Bloomberg. The campus financing totals about $16.3 billion, with roughly 15% penciled in as equity and the remainder to be funded by bonds issued through a special‑purpose vehicle, the materials show.
Pimco is anchoring the debt piece of the deal, which Bank of America is leading and that parties expect to close on April 17, the documents and the people said. Blackstone is planning to supply about $2 billion of the equity, Bloomberg previously reported. Spokespeople for Pimco and Bank of America declined to comment; a Blackstone representative did not immediately respond. Oracle said it was “proud of the rapid progress that’s been made both in financing and developing our data center in Saline Township.”
The bonds are being structured as a private 144A placement aimed at large, institutional investors. They carry a 19.5‑year maturity and a 14‑year weighted‑average life — a measure of the typical timing of principal repayment on an amortizing issue. Under the proposed amortization profile, borrowers would pay interest only for the first six years, with principal repayment scheduled across the following 13 years.
Deal documents indicate Pimco is testing the market for investor appetite and that final terms could change. To entice buyers, the securities are being pitched at about one percentage point above the yield on an existing issue of Oracle bonds maturing in April 2040; that benchmark was trading around 6.5% on Wednesday, implying a coupon in the neighborhood of 7.5% for the new securities at the time of commitment.
The Saline Township financing is the latest large‑scale data‑center funding arranged by Pimco. Last year the firm teamed with Blue Owl Capital to help finance Meta’s Hyperion site in Louisiana; in that transaction Pimco moved quickly to sell down more than $1 billion of the debt, a strategy Bloomberg reported produced roughly $2 billion of gains for client funds as secondary market prices jumped after pricing.
The structure — long dated, amortizing bonds sold via a 144A private placement and a significant equity tranche — underscores growing institutional investor interest in bespoke, infrastructure‑style financings for hyperscale cloud and AI‑oriented data centers. Market participants will be watching investor demand and any tweaks to pricing or amortization ahead of the expected April 17 closing.