JPMORGAN , GOLDMAN BOOST YIELD ON VOLTA AI LOAN TO LURE INVESTORS

What happened: JPMorgan and Goldman Sachs raised the yield and sweetened terms on a US$5 billion leveraged loan sale for Volta Infrastructure Holdings, an AI cloud startup, and sold it on Thursday. Key numbers: US$5 billion loan; sold at 6.5 percentage points above the benchmark rate and 95 US cents on the dollar; yields past 11 per cent; split into a US$1.3 billion term loan and a US$3.7 Why it matters: The deal drew investor demands for greater compensation on risky AI-linked debt, and it rankled CLO managers because it is unrated and comes from a debut borrower at a volatile time.

JPMorgan and Goldman Sachs raised the yield and sweetened terms on a US$5 billion leveraged loan sale for Volta Infrastructure Holdings, an AI cloud startup, and sold it on Thursday.

The deal drew investor demands for greater compensation on risky AI-linked debt, and it rankled CLO managers because it is unrated and comes from a debut borrower at a volatile time.