People familiar with the matter said NVIDIA (NVDA.O) is marketing a
multi-tranche investment-grade bond sale, its first in roughly five years, split
into seven tranches with maturities from 2 to 30 years. Initial price talk for
the longest-dated tranche is about 90bps over comparable U.S. Treasures.
Proceeds will be used for general corporate purposes, including repayment and
refinancing of existing debt. The move comes as AI-focused firms, including
Alphabet and Amazon, have raised hundreds of billions of dollars in the debt
market since last year to build compute capacity, and investors have continued
to absorb the new supply. NVIDIA last issued investment-grade bonds in June
2021, raising $5.0 billion.
