Microsoft-Linked Bond Sale Draws $8 Billion in Investor Demand, Deal Size Increased

A Microsoft-linked bond sale has attracted significant investor demand, prompting an increase in the deal size by approximately $1 billion from its original target of $3.9 billion.

The bonds are being sold through subsidiaries of QTS Realty Trust LLC to finance a data-center venture in Georgia. The debt is expected to be issued by two special purpose liability subsidiaries of QualityTech LP, a QTS unit.

The offering has been marketed with a coupon of around high-6% and a discounted price that would push the yield to low-to-mid 7%. This aligns with single-B tier junk bonds, despite the bonds being expected to receive an investment-grade rating.