A quote from The Information via Matt Levine:

> The bonds for the Hyperion data center priced with a coupon of almost 6.6%, roughly a percentage point higher than Meta’s outstanding corporate bonds and in line with the average junk bond. That’s a higher yield than investors would expect given that S&P rated the Hyperion bonds A+, safely within the investment-grade spectrum.

Apparently the bond market is pricing the guarantees made by Meta to this other entity as not quite as good as bonds that Meta issues itself, and Meta is willing to pay the higher interest rate. So, not entirely a free lunch?

I guess sometimes a company wants to issue junk bonds and its rating gets in the way.

If the article is correct and they are 144A then they will also be a little less liquid. But yeah, I have to imagine everyone involved knows what’s up. Just happens to work for everyone (for now).