CoreWeave has sweetened the terms of its $2.6 billion leveraged loan by offering a yield exceeding 9% and implementing other adjustments, according to sources familiar with the matter. This move comes as investor demand for debt issued by hyperscaler companies, which are heavily investing in AI infrastructure, has reportedly cooled.
The original structure of the loan had faced challenges in the market, prompting CoreWeave to enhance the appeal to potential investors. The increased yield signifies a higher cost of borrowing for CoreWeave but aims to successfully finalize the financing amid the shifting market sentiment.
This development aligns with broader trends observed in the debt markets for major US technology companies. Hyperscalers like Amazon, Alphabet, Meta Platforms, and Oracle have issued a significant volume of bonds, with Goldman Sachs expecting up to $400 billion in bond issuance in 2027. However, investor appetite appears to be waning, leading to higher yields on new debt offerings and wider spreads on existing bonds, as investors demand greater compensation for the growing supply.
CoreWeave's financial maneuvers with this loan are crucial for its ongoing AI infrastructure expansion. The company recently secured an $8.5 billion loan leveraging contracted AI compute revenue and has significant commitments, including approximately 260 MW of incremental critical IT load for Phase II of its Texas AI data center. Galaxy Digital, separately, is funding a CoreWeave data center build in Texas with $3.507 billion in senior secured notes at a 9.875% interest rate.
