Blackstone (BX) Could Earn Over 10% Yield on $9 Billion Anthropic AI Deal

Blackstone plans to double its investment in India to $100 billion over five years, citing long-term growth prospects. The firm's COO highlights India's strong capital markets. Fairfax Financial Holdings also invested $5.6 billion in IDBI Bank. India's economic formalization, infrastructure investments, and renewable energy expansion have boosted productivity and capital market activity, with significant increases in equity and bond issuances.

New Mexico regulators declined to investigate a $200M TXNM Energy stock sale to Zimmer Partners, linked to Blackstone's $11.5B acquisition. Nonprofits argued the sale was illegal, similar to a previously ruled illegal $400M stock sale to Blackstone. The merger case will proceed, with a hearing scheduled. Blackstone and TXNM expressed support for the acquisition.

Anthropic offered Blackstone a coupon of over 10% for a $9B junior slice of a $60B debt package arranged by Broadcom, according to the Financial Times. The debt covers part of a $125.2B, five-year commitment to lease Google's tensor processing units. Broadcom, which designs and supplies Anthropic's chips, also arranged and guaranteed the debt package, raising potential conflicts of interest.

Anthropic is offering Blackstone a 10%+ yield on $18B junior debt for a $60B AI chip deal, with Broadcom guaranteeing $42B senior debt. The financing supports Anthropic's acquisition of Google's TPUs. Blackstone may invest $9B, with total returns exceeding 10%.

Several stocks, including Evercore (EVR), FirstCash (FCFS), Blackstone (BX), and Atlanticus Holdings (ATLC), fell after September consumer price inflation data exceeded expectations, raising concerns about Federal Reserve interest rate hikes. The data showed headline inflation at 3.7% annually and core inflation at 2.6%, increasing the probability of a rate hike to 44%. This triggered market volatility and pushed Treasury yields higher, impacting various sectors.

Galderma (SIX:GALD) plans to acquire ZO Skin Health from Blackstone (NYSE:BX) for $1.5 billion, according to Reuters. The deal aims to expand Galderma's U.S. presence in the competitive medical skincare market. Galderma, partly owned by L'Oréal, also owns brands like Cetaphil and Alastin.