From mint · · 1m
GPU Financing Filters Further Into ABS With Planned Newton Deal
Newton Commercial Finance explores $180m AI chip-backed bond deal.
In brief
Newton Commercial Finance explores $180m AI chip-backed bond deal. Newton Commercial Finance, a joint venture between Apple Bank and Eagle Point Credit Management, plans a $180 million bond offering partially backed by AI chip loans. Originally reported by mint.
Newton Commercial Finance
Newton Commercial Finance, a joint venture between Apple Bank and Eagle Point Credit Management, is in early talks with investors about a potential $180 million bond offering partly backed by artificial intelligence chip loans.
GPU Loans in Collateral
Loans tied to AI chips, including graphic processing units or GPUs, make up about 15% of the collateral pool.
Other ABS Deals
Stonebriar sold an $869 million ABS offering with GPU loans accounting for roughly 15% of the collateral, while Wingspire’s transaction included about 20% GPU loans.
Ratings and Collateral
Newton Commercial Finance’s asset-backed securities are expected to be rated by Morningstar DBRS with ratings ranging from AAA to BB tier.
The short version
Newton Commercial Finance, a joint venture between Apple Bank and Eagle Point Credit Management, plans a $180 million bond offering partially backed by AI chip loans.
