QTS seeks $800M debt at higher Treasury spread

Blackstone-backed data center operator QTS is facing significantly higher borrowing costs for debt financing amid shifting market sentiment regarding AI-related debt. Sources indicate that QTS is now shopping debt to investors at 2.2 to 2.50 percentage points above comparable Treasury yields, compared to a rate of 1.7 points weighed six months ago for a nearly identical offering. Meanwhile, other large tech and AI debt offerings, such as those involving SpaceX and Anthropic, are also experiencing widening pricing or adjusted credit expectations. Open article →