Blackstone-Backed QTS Raises $3.9 Billion for Microsoft Data Center

Blackstone-backed QTS is tapping the bond market to raise $3.9 billion and fund a Microsoft-linked data center facility.

The company is marketing five-year high-grade corporate bonds with an early pricing around a 7.63% yield, according to Bloomberg. This means even well-regarded borrowers are paying up for large chunks of financing while interest rates remain elevated.

QTS' $3.9 billion deal is led by major underwriters including Citigroup, Goldman Sachs, JPMorgan Chase, and Morgan Stanley. The offering is about $1 billion bigger than initially floated, which could signal rising construction and equipment needs or strong demand from bond buyers.