CoreWeave taps U.S. junk-debt market again with bond reopening

CoreWeave, which rents access to high-end AI processors, has been tapping different corners of credit markets to help finance expansion of its cloud computing capacity. Photo by Yuki Iwamura/BloombergArticle contentCoreWeave Inc. tapped the United States junk-bond market for a second time in a week as the cloud infrastructure firm seizes on strong investor demand for AI-related debt.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe Livingston, New Jersey-based company sold US$1 billion of additional 9.75 per cent senior notes due 2031, according to a person with direct knowledge of the matter. The debt priced at 102 cents on U.S. dollar, the person added, asking not to be identified because details are private.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentArticle contentThe offering was run by JPMorgan Chase & Co., Morgan Stanley and Goldman Sachs Group Inc.Article contentInvestorCanada's best source for investing news, analysis and insight.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe move comes a week after CoreWeave raised US$1.75 billion in its initial 2031 notes offering, amid relentless investor appetite for debt tied to the artificial intelligence boom. Those bonds have since rallied to more than 102 cents, according to Trace pricing data, having priced at par.Article contentCoreWeave, which rents access to high-end AI processors, has been tapping different corners of credit markets to help finance an aggressive expansion of its cloud computing capacity. Its capital needs have increased after signing a US$21 billion deal last week to supply AI cloud capacity to Meta Platforms Inc., adding to an earlier US$14.2 billion agreement.Article contentWall Street has been able to successfully stitch together tens of billions of dollars in funding to underpin the AI boom in recent weeks, even as the conflict in the Middle East led some borrowers to pause debt sales.Article contentAs optimism about a longer-term peace deal rises, borrowing costs have eased broadly for companies of all types — bringing with it a revival in issuance.Article contentData centres linked to Alphabet Inc.’s Google are also seeking to raise US$5.7 billion from a junk-bond transaction, in what would be the largest deal of its kind to finance the AI buildout frenzy. That deal, led by Morgan Stanley, is offered at a yield of 6.25 per cent to 6.375 per cent and may also price Thursday, according to a different person with knowledge of the matter.Article contentBloomberg.comArticle contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentTrending The Great Correction: Not even Wayne Gretzky's hometown could escape the crash of the 'exurbs' Real Estate A rise in mortgage rates may ‘pull the rug' out from under the spring housing market, says CREA Mortgages Posthaste: What Mark Carney's gas tax cut could mean for the Bank of Canada News Cineplex gauging interest from potential buyers Retail & Marketing What is Anthropic's Mythos AI model and why does it have the financial world in a panic? Innovation Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.

The Great Correction: Not even Wayne Gretzky's hometown could escape the crash of the 'exurbs' Real Estate A rise in mortgage rates may ‘pull the rug' out from under the spring housing market, says CREA Mortgages Posthaste: What Mark Carney's gas tax cut could mean for the Bank of Canada News Cineplex gauging interest from potential buyers Retail & Marketing What is Anthropic's Mythos AI model and why does it have the financial world in a panic? Innovation