CoreWeave Cuts Price on $2.6 Billion Loan as Weak Demand Pushes Bond Yields to 13.5%
CoreWeave widened the pricing spread on a $2.6 billion loan to 5.5 percentage points over the benchmark and cut the issue price to 97 cents on the dollar, Bloomberg reported, as investors step back from AI infrastructure financing.
The revised terms follow a sharp rise in borrowing costs, with the company’s five-year credit default swap premium surging 55% in July and bond prices falling another 4 points to yield approximately 13.5%, less than two months after Fitch Ratings assigned a BB- grade. The financing will underwrite GPUs and computing capacity for customers including Anthropic, Jane Street and Hudson River Trading under take-or-pay contracts.
From the sources (2 posts)
@junkbondinvestRemember when Fitch rated $CRWV's unsecured bonds BB- less than 2 months ago? Those same bonds are down another 4pts today and now yielding ~13.5%...
@wallstengineCOREWEAVE SWEETENS $2.6B LOAN AS AI DEBT DEMAND WEAKENS Bloomberg reports $CRWV widened the spread to as much as 5.5 percentage points over the benchmark. It also cut the loan’s price to 97 cents from 99 cents. The loan will fund GPUs and