KDC seeks $3.5 billion credit‑tenant lease financing for AT&T’s new Plano headquarters
Developer KDC is pursuing roughly $3.5 billion of credit‑tenant lease debt that would be secured by AT&T’s future rent on its planned 54‑acre, 2.3 million‑square‑foot campus in Plano, Texas. The financing is being arranged by CGA Capital and CBRE and is expected to have an 18.7‑year weighted‑average life. Under a February incentive agreement, AT&T must invest at least $1.35 billion in construction costs for the project.
Why it matters
The size of the deal far exceeds typical credit‑tenant lease transactions, which usually range from $25 million to $100 million, so it could reshape market expectations for large‑scale lease‑back financing. Investors in the debt will be exposed to AT&T’s lease payments rather than the underlying real‑estate assets.
Key facts
- 1KDC is seeking about $3.5 billion in credit‑tenant lease financing. briefs.co
- 2The debt is expected to carry a weighted‑average life of 18.7 years. briefs.co
- 3AT&T must invest a minimum of $1.35 billion in construction under the Plano incentive agreement. briefs.co
- 4CGA Capital and CBRE are arranging the financing. briefs.co
- 5The campus will span 54 acres. briefs.co
- 6The project is planned to be a 2.3 million‑square‑foot headquarters with a 2028 move‑in target. finance.yahoo.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.