Real Estate Developer KDC Seeks $3.5 Billion in Private Debt for AT&T’s New Texas Headquarters
Texas real estate developer KDC is seeking approximately $3.5 billion in private debt financing for AT&T’s planned global headquarters in Plano, Texas, using a structure tied to future lease payments from the telecommunications company.
The proposed financing would support construction of AT&T’s new corporate campus, a major commercial real estate development in the Dallas-Fort Worth region. The transaction illustrates how developers can use long-term corporate tenancy to attract institutional credit investors, even as conventional office lending faces challenges.
The financing has not been announced as completed, and its final terms, investor commitments and pricing have not been publicly confirmed.
How the $3.5 Billion Financing Could Work
KDC is reportedly pursuing a credit tenant lease financing structure, in which lenders evaluate the creditworthiness of a property’s tenant and the expected rental payments supporting the debt.
Unlike conventional speculative office development loans, credit tenant lease financing can provide investors with cash flows linked to a contracted corporate tenant.
The structure does not eliminate development risk. Construction delays, cost overruns, lease provisions and refinancing requirements can still affect lenders’ recoveries.
The proposed $3.5 billion financing should also be distinguished from the project’s publicly reported construction budget. The financing target is substantially larger than the minimum capital investment required under AT&T’s agreement with Plano, and a detailed reconciliation has not been disclosed.
AT&T’s Plano Campus Takes Shape
AT&T announced its planned relocation from downtown Dallas to Plano in January 2026.
The headquarters will occupy approximately 54 acres at the former Electronic Data Systems campus on Legacy Drive.
Recent Texas construction filings describe eight buildings, three parking garages and a utility plant, with estimated construction costs totaling approximately $1.06 billion.
The filings indicate a proposed construction start in December 2026 and completion in March 2029, although these remain projected dates rather than confirmed milestones.
Under the development agreement, AT&T must invest at least $1.35 billion, construct a minimum of 2 million square feet and meet employment commitments involving 10,000 workers.
Plano has approved a $20 million incentive package alongside property tax rebates designed to support the relocation.
Corporate Leases Offer a Different Credit Profile
The transaction could appeal to insurers, pension funds and private credit managers seeking long-duration contractual income.
AT&T’s corporate credit profile provides an important reference point for lenders assessing the durability of future lease payments.
However, the credit quality of a corporate tenant is not equivalent to a guarantee of repayment. The legal structure, lease obligations and security package would determine lenders’ actual exposure.
AT&T reported $149.8 billion in net debt as of Sept. 30, 2026, according to its third-quarter regulatory filing.
That balance relates to AT&T’s consolidated corporate finances and should not be confused with KDC’s proposed project financing.
Implications for Private Credit Investors
The financing proposal demonstrates how large, tenant-backed developments can access capital beyond traditional bank construction loans.
For institutional lenders, the central questions will include construction completion guarantees, the enforceability of lease payments, debt maturity and the relationship between the financing amount and collateral value.
KDC’s reported fundraising effort also offers a potential test of investor demand for major office developments supported by long-term corporate occupancy.
A successful transaction could provide a financing benchmark for other large headquarters projects, but the final economics will depend on terms that have not yet been disclosed.
