JPMorgan Chase & Co. and Goldman Sachs Group Inc. have increased the yield and adjusted the terms on a $5 billion leveraged loan for Volta Infrastructure Holdings Ltd. The move comes as investors seek higher returns for taking on riskier debt linked to the artificial intelligence sector.
The banks began marketing the loan for Volta, an AI cloud startup, last week. On Thursday, they closed the deal at a yield of 6.5 percentage points above the benchmark rate and a discounted price of 95 cents on the dollar, according to sources familiar with the matter.
The higher yield and adjusted terms aim to attract investors who are cautious about the risks associated with debt tied to rapidly growing but volatile industries like AI.