CoreWeave Shops $4B Loan at Half the Yield of Its Bonds
TL;DR
- CoreWeave plans to raise at least $4 billion through an investment-grade loan at 7% to 7.5%, led by Morgan Stanley and Mitsubishi UFJ.
- The expected coupon is roughly half the 14.21% yield on CoreWeave's 2032 unsecured notes as of November 11.
- The facility would be backed by Nvidia chips and a contract with an investment-grade customer, mirroring an $8.5 billion deal from March.
CoreWeave is shopping a new loan at roughly half the yield its own bonds command. Bloomberg reports the AI cloud provider plans to raise at least $4 billion through an investment-grade facility yielding 7% to 7.5%, with Morgan Stanley and Mitsubishi UFJ Financial Group leading the syndication. The deal could launch as soon as next week.
The gap is the story. CoreWeave's 2032 unsecured notes traded at a 14.21% yield on November 11, and two of its bonds have been quoted above 17% in recent weeks. Investment-grade buyers are getting a different instrument: the facility is 'backed by chips and related customer contracts,' per Bloomberg, mirroring an $8.5 billion deal CoreWeave closed in March. The counterparty is identified only as an investment-grade customer.
The loan would fund more Nvidia chip purchases. CoreWeave posted third-quarter revenue of $3.66 billion, up 168% year over year, and lifted its 2026 outlook to between $13 billion and $13.3 billion. It also booked a $709 million net loss, and total debt now stands at $46.9 billion.
Plans aren't final and terms could change. The move lands in a busy week for our NVIDIA coverage, with the chipmaker's own leadership questions circulating alongside its largest cloud customer's debt refinancing.
Originally reported by bloomberg.com
Read the original article →Original headline: CoreWeave Shops $4B Investment-Grade Loan at 7-7.5%, Half the Yield of Its 14% Junk Bonds