Gate News message, April 16 — AI cloud infrastructure provider CoreWeave announced a $1 billion senior unsecured notes offering with a 9.75% coupon, maturing in 2031. The notes are expected to price between 101.5 and 102 cents on the dollar, potentially completing pricing on April 17. JPMorgan Chase, Morgan Stanley, and Goldman Sachs are joint bookrunners.
This offering comes just one week after CoreWeave completed its inaugural $1.75 billion bond issuance on April 9. According to Trace pricing data, the first tranche of bonds quickly appreciated to above 102 cents, trading at a significant premium to par. The strong secondary market demand has enabled the company to accelerate its capital-raising efforts.
CorWeave’s rapid return to the junk bond market reflects the company’s capital-intensive business model. As a GPU rental provider, CoreWeave purchases high-end Nvidia processors, uses them as collateral for debt financing, and leases computing capacity to tech giants including Microsoft, Meta, and OpenAI. As of the fourth quarter of 2025, the company’s total debt increased by approximately $7.5 billion sequentially, while net interest-bearing debt rose by about $3.4 billion. Interest expenses as a percentage of revenue increased from 23% to 25% quarter-over-quarter.
The company attributed the new offering proceeds to debt repayment and general corporate purposes. CoreWeave’s urgent return to capital markets is directly tied to expanding customer contracts. Last week, CoreWeave announced a $21 billion agreement with Meta Platforms to provide AI cloud capacity, adding to a prior $14.2 billion contract. The company now carries approximately $66 billion in revenue backlog, providing strong visibility into future cash flows. Currently, Microsoft accounts for roughly two-thirds of CoreWeave’s revenue, though management expects this concentration to decline below 35% as customer diversification progresses.
CorWeave’s financing activity mirrors broader industry trends. A data center project affiliated with Alphabet is simultaneously planning to raise $5.7 billion through junk bond issuance, potentially on April 17, according to sources. Led by Morgan Stanley, the deal is expected to price at a 6.25%-6.375% yield, significantly lower than CoreWeave’s 9.75% cost of capital, reflecting the credit advantage of association with a major tech company.
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