Morgan Stanley Leads $3.1B GPU Loan and Extends Fed Rate Hold to 2026
Morgan Stanley leads a $3.1B term loan B at S+500 to finance GPU installations for OpenAI and Cohere take-or-pay contracts. It now forecasts no Fed rate cuts through 2026 and two 25bp cuts in January and March 2027 to a 3.00%–3.25% terminal range.
1. CoreWeave Loan Arrangement
A Morgan Stanley-led arranger group is marketing a $3.1 billion term loan B to CoreWeave priced at S+500 with a 0% floor, OID of 99 and a 5.5-year maturity implying a 9.21% yield. The non-callable one-year facility carries a 1.35x DSCR covenant, a one-month principal and three-month interest liquidity reserve, and MS (as administrative agent) alongside MUFG will use proceeds to fund GPU installations under take-or-pay compute contracts with OpenAI and Cohere.
2. Revised Federal Reserve Outlook
Morgan Stanley has shifted its U.S. monetary policy forecast to no rate cuts through 2026, now expecting two 25-basis-point reductions in January and March 2027, targeting a 3.00%–3.25% terminal range. The revision reflects elevated inflation, a resilient economy and dissent among Fed policymakers signaling a move toward a more neutral stance.