Key facts
- Alphabet's Waymo is seeking more than $3 billion in debt financing.
- Pacific Investment Management, Blackstone, and Sixth Street Partners are potential lenders.
- The debt is expected to be unrated and priced at over 500 basis points above benchmark.
- Waymo is pursuing debt to fund fleet expansion and cover rising AI costs.
- Goldman Sachs is advising Waymo on the potential deal.
Alphabet's autonomous vehicle unit, Waymo, is reportedly in the final stages of securing over $3 billion in debt financing for the first time. Lenders in the potential deal include Pacific Investment Management, Blackstone, and Sixth Street Partners, according to Bloomberg News.
The unrated debt is expected to price at more than 500 basis points over the benchmark. Waymo is turning to debt financing as it expands its driverless fleet and faces increasing artificial intelligence costs.
Waymo has been working with Goldman Sachs to finalize the deal, which could be completed in the coming days, though terms remain subject to change. This move comes after Waymo raised $16 billion in February, valuing the company at $126 billion.