The largest private debt issuance in history – a series of bonds for Meta's AI data center – has dropped to its worst level since its nominal issuance in October last year. On Tuesday, when the Nasdaq closed at an all-time high, anxiety in the industry’s credit market intensified.
The bond financing of $27.3 billion, backing the Hyperion data center, traded at 94.4 cents on the dollar – a record low. This decline coincided with the largest intraday stock surge for Meta in a year: 9%. This contradiction – rising stocks while bonds fall – has become a central signal. The issuance became the largest private debt offering in history. The bonds are backed by Meta's AI division, have a coupon of 6.581%, and mature in 2049. PIMCO, the world's largest bond manager, acted as an anchor with $18 billion. BlackRock funds purchased over $3 billion.
Formally, the debt is recorded on the balance sheet of Beignet Investor LLC. The latest quotes are 94.61–94.4, below the nominal value of 100. In October 2025, S&P assigned the bonds an A+ rating – one level below Meta's regular bonds. In the early days after issuance, it traded above par, reaching 110. By the end of July, it had dropped to 96, today retreating 14% from its peak. PIMCO GIS funds value it at 94.5. The $18 billion position, purchased at par, shows a paper loss of about $1 billion. The losses contrast with Meta's positive outlook. On September 8, the company launched the AI agent Muse with free, $20, and $100 tiers – it quickly topped the U.S. App Store. Goldman Sachs noted that companies in the 'basket of consumer inertia' (AT&T, Allstate, Netflix, Booking.com) fell by 2.6% in a day.
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