CoreWeave to Raise $3.55B in Junk Bonds with Double-Digit Yields
CRWV•CoreWeave is raising $3.55 billion in global debt through $2.3B euro notes at 8.5-8.75% yields and $1.25B dollar notes at 9.75%, led by JPMorgan. The AI infrastructure provider plans to invest nearly $35B and burn $26B in cash this year while leveraging multiple funding channels since its May 2025 debut.
1. Debt Offering Details
CoreWeave has launched a $3.55 billion junk bond offering split into €2 billion in euro-denominated notes and $1.25 billion in dollar notes. JPMorgan Chase is underwriting the deal, marking the first euro-denominated junk-bond issuance by a US AI infrastructure company.
2. Investor Demand and Yields
The euro tranche has attracted over €7 billion in orders from real money accounts, hedge funds, credit funds and some CLOs, reflecting strong European appetite for higher-yield AI-linked credit. Pricing discussions center on yields of 8.5% to 8.75% for euros and around 9.75% for dollars.
3. Credit Ratings and Funding Needs
CoreWeave is rated Ba3 by Moody’s, B+ by S&P and BB- by Fitch, underscoring its speculative-grade status. Since its May 2025 debut, the company has issued $6.5 billion of junk bonds, $6.6 billion of convertible notes and a $3.1 billion leveraged loan backed by customer chip contracts.
4. Use of Proceeds and Financial Strategy
Proceeds will fund a planned $35 billion AI infrastructure buildout and cover an anticipated $26 billion cash burn this year. The company continues to leverage multiple funding channels to support rapid expansion of its GPU grid and related services.
