Lambda closed a $1.008 billion investment-grade delayed-draw term loan to finance GPU infrastructure supporting committed AI infrastructure deployments. The financing represents Lambda’s first U.S. fixed-rate financing and its first institutional debt transaction exceeding $1 billion.
The facility was marketed to insurance companies and fixed-income investors and was oversubscribed.
Morningstar DBRS assigned the financing an A (low) rating, while Moody’s assigned a Baa1 rating.
The facility carries a fixed interest rate of 6.78% and matures on May 30, 2033.
Lambda plans to use the proceeds to purchase and develop GPU infrastructure supporting three committed customer deployments with two investment-grade offtakers across multiple data centers.
The loan is secured by the GPU servers and related infrastructure financed through the facility along with contracted cash flows.
The delayed-draw structure aligns capital deployment with cluster commissioning milestones.
The transaction follows Lambda’s broadly syndicated loan financing completed in August 2026.
Lambda said its major 2026 financings have each raised approximately $1 billion, demonstrating its growing access to institutional credit markets.
Support: J.P. Morgan served as sole coordinating lead arranger, structuring agent, and bookrunner. Davis Polk & Wardwell advised Lambda, while Latham & Watkins represented the lenders.
KEY QUOTES:
“The capital in this offering underwrites infrastructure in decades, not quarters, and has funded us as a private company on the strength of our customer contracts.”
“Our progression into deeper and more diversified pools of capital is the market’s verdict on the durability of our contracts and scalability of our business.”
Michel Combes, CEO of Lambda
