Blackstone's QTS cuts planned private debt sale by about 60% to roughly $300 million

QTS, a data center operator backed by Blackstone, is raising about $300 million in a private debt sale after initially targeting roughly $800 million, a cut of about 60 per cent, according to people with knowledge of the transaction. The Business Times reported that some investors balked at the price the borrower was offering.

QTS Trims Private Placement After Investor Pushback

Some investors also faced constraints because the company has tapped the private placement market several times, the people said, asking not to be identified discussing a private matter. QTS has raised billions of dollars in the private-placement market through at least two debt sales over the past 18 months, including a US$1.65 billion high-grade bond sale last year and another US$800 million financing.

Blackstone was reluctant to offer significantly higher yields on its latest borrowing because it finances frequently across multiple markets and issuers, according to the people. Wider pricing on the QTS transaction could establish a more expensive reference point for investors evaluating other Blackstone-related debt, the people said.

The US$300 million financing included a US$100 million seven-year US private placement that was priced on Friday to yield 2.45 percentage points more than benchmarks. It also includes a US$200 million five-year bank loan portion that is expected to be priced in the coming weeks, one of the people said. Blackstone opted to proceed with a smaller financing at its desired pricing, instead of hiking spreads and raising the full US$800 million.

The data center developer had planned to use the US$800 million private placement to refinance existing five-year bank debt. With the smaller offering, that bank financing can remain in place, one of the people said. A representative at Blackstone declined to comment.

QTS has also tapped other credit markets this year. It sold project finance green bonds in April and August, borrowing US$4.6 billion for the first deal and US$3.9 billion for the second. Blackstone acquired QTS in 2021 for about US$10 billion including debt.

Blackstone's Funding Record at akta.pro

According to akta.pro company records, Blackstone has five funding rounds on record, including a $1.1 billion post-IPO debt round in October 2026, a post-IPO debt round led by UBS in September 2026, and two post-IPO debt rounds in October 2025 of $1.2 billion and $4.3 billion. The same records list total funding of $7.4 billion and a valuation estimate of $25 billion+.

QTS's Earlier $800 Million Placement

Bloomberg reported on October 26, 2026 that QTS was seeking about $800 million in private placement debt, selling the securities through a special-purpose entity called QTS Thunder Managing Issuer LLC, with pricing expected as soon as that week. On October 6, 2026, Capacity reported that QTS appointed Val Walsh, former Microsoft VP of Cloud Operations, to lead its Europe team. QTS is developing data centres in Northumberland, Italy, Finland, and Spain, according to Capacity.

QTS Bank Loan Pricing Expected

The US$200 million five-year bank loan portion of the financing is expected to be priced in the coming weeks, one of the people said.