CoreWeave Sells $1B of 9.75% 2031 Notes at 102¢, Target Raised to $67
CoreWeave sold $1B of 9.75% senior notes due 2031 at 102 cents on the dollar, tapping strong AI-driven junk debt demand. Following this funding and new $21B Meta Platforms contract plus an Anthropic agreement, Bernstein raised its price target to $67 from $56 while maintaining an Underperform rating.
1. Details of the Latest Bond Offering
CoreWeave tapped the junk-bond market again with a $1 billion sale of 9.75% senior notes maturing in 2031, priced at 102 cents on the dollar. This follows an initial $1.75 billion tranche of the same notes and underscores strong investor appetite for AI-related debt, with proceeds set to fund cloud infrastructure expansion.
2. Major Customer Contracts and Analyst Response
CoreWeave’s recent financing surge coincides with a $21 billion incremental agreement to supply AI cloud capacity to Meta Platforms and a new deal with Anthropic. In response to these contracts and resilient near-term performance, Bernstein raised its price target to $67 from $56 but kept an Underperform rating, citing long-term concerns despite robust demand.