Sequent
@sequentanalyst
Investor. Curious about business models, behavioural economics, social psychology.
Joined May 2019
307 Following 564 Followers
We're in the "hide it off balance sheet in an SPV" phase of the debt-fueled AI datacentre build-out cycle
The latest off-balance sheet datacentre financing wheeze - this time it's $META.
80/20 Blackrock/Meta JV - Meta brings $2.3B in assets, BlackRock adds $4.9B cash (backed by a $12.5B debt facility), and Meta takes a $1B distribution to true-up the equity.
Meta is only committing to a 4yr lease. A Residual Value Guarantee (RVG) means Meta guarantees a RV of $13bn
Why? Classic off-balance-sheet financing. The 20% equity cap and 4-year initial term allow Meta to avoid consolidating the JV's $12.5B debt load on its own BS. Meta keeps LT control - but the debt and the asset sit off B/S.
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