move the classification boundary
Where the IG label lives in the Meta Hyperion SPV lease structure Lease payments flow from Meta's consolidated balance sheet across a classification boundary into an off-balance-sheet SPV that services arranger debt above a subordinated equity first-loss layer. The investment-grade chip attaches to the lease contract at the boundary. A control consolidates the SPV on Meta's sheet, moving the boundary and the label. Meta — consolidated balance sheet operating assets & cash existing obligations IT lease — off sheet, sits in the SPV IT lease — consolidated here, wrapper gone classification boundary consolidated — boundary moved lease payments IG IG SPV — 'Beignet' financing owns Hyperion, pays debt from leases Hyperion data center arranger debt repaid from lease cash subordinated equity first-loss cushion arranger places senior debt private credit equity, first loss IG paper — private money absorbs at IG terms IG wrapper gone — plain leverage on Meta's sheet easing asset-backed rules pushes the same logic onto rated paper