• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Investing

CoreWeave eyes $1.5B bond raise to ease debt load following lacklustre IPO: report

by May 9, 2025
by May 9, 2025
CoreWeave, CoreWeave stock price, Mike Intrator

CoreWeave, the fast-growing US-based AI data centre company, is planning to raise at least $1.5 billion in fresh debt to refinance a portion of its sizeable liabilities and support further investment, just weeks after a subdued public market debut, the Financial Times reported.

The New Jersey-headquartered company is working with JPMorgan on a roadshow this week to meet prospective credit investors, as it weighs a high-yield bond offering, according to people familiar with the matter, FT said.

Early discussions suggest that CoreWeave may ultimately seek to raise more than $1.5 billion, depending on demand.

The move underscores CoreWeave’s efforts to reduce its borrowing costs by shifting some of its high-interest private loans into the public credit market, at a time when enthusiasm for AI infrastructure investments remains robust despite broader market caution.

Debt dragged CoreWeave’s IPO, but the stock has rebounded

CoreWeave’s planned debt raise comes shortly after its initial public offering in March, which was dramatically scaled back in size due to market concerns over its financial profile.

The company initially aimed to raise $2.7 billion at a valuation of $47–$55 per share, but revised the deal down to $1.5 billion at $40 per share.

The IPO was met with lukewarm investor sentiment, largely attributed to CoreWeave’s heavy debt load and a cooling in AI-related equity hype.

Nonetheless, its stock has since rebounded, gaining nearly 38% to reach $55 by Thursday, buoyed by continued investor confidence in the long-term growth prospects of generative AI.

Roughly $1 billion of the IPO proceeds have already been used to repay a bridge loan led by JPMorgan, a key player in both the IPO and the upcoming bond deal.

Analysts have flagged high debt, but CEO calls it “company’s fuel”

Founded in 2017, CoreWeave has experienced explosive growth, with revenue jumping from just $16 million in 2022 to nearly $1.9 billion in 2023.

This rapid expansion has been financed heavily by debt, with the company raising $12.9 billion over the past two years from private lenders including Blackstone and Magnetar Capital.

Most of these borrowings carried steep interest rates ranging from 11% to 15%.

As of December 2024, CoreWeave had $8 billion in total debt.

Of that, $7.5 billion in principal and interest obligations fall due by the end of 2026, placing the firm under pressure to restructure or refinance at more favourable terms.

Analysts have earlier pointed at the company’s high debt as one of the reasons for its subdued post-IPO performance, even though CEO Mike Intrator has defended it, saying debt is “the engine, the fuel for this company.”

“Whenever you see debt on our balance sheet, you’re going to see an offsetting revenue contract that is larger,” he said in a recent CNBC interview.

JP Morgan however warned last month that the capital-intensive nature of CoreWeave’s operations, driven by debt, may not appeal to risk-averse investors, calling the company “a wild, lumpy, volatile ride.”

Proposed bond to be unsecured, issued by parent entity

The current effort marks a shift from CoreWeave’s earlier financing model, which involved setting up special-purpose vehicles backed by AI chips and customer contracts.

The new proposed bond, however, would be unsecured and issued by the parent entity itself, according to a pitch document seen by the Financial Times.

CoreWeave’s growing clout in the AI ecosystem is bolstered by its close relationship with Nvidia, which not only supplies the bulk of the 250,000 AI chips underpinning CoreWeave’s infrastructure but also holds a 5% stake in the company.

Nvidia further participated in the IPO with a $250 million share purchase, underscoring its commitment to the data centre operator.

The post CoreWeave eyes $1.5B bond raise to ease debt load following lacklustre IPO: report appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Panasonic to slash 10,000 jobs in 2025 amid Japan’s economic downturn
next post
UK’s Crown Estate clears offshore wind expansion to raise energy output

Related Posts

GMS stock jumps 29% on takeover interest from...

June 20, 2025

Japan’s rice price surge: what’s driving it and...

June 20, 2025

Foxconn and Nvidia to deploy humanoid robots in...

June 20, 2025

US stocks climb higher at open: Dow jones...

June 20, 2025

Apollo backs £4.5bn loan for delayed Hinkley Point...

June 20, 2025

Audi weighs $4.6 billion US plant amid tariff...

June 20, 2025

Tesla stock gains ahead of robotaxi launch: analyst...

June 20, 2025

BofA raises STOXX 600 target amid resilient global...

June 20, 2025

XRP price stuck under $3: can it finally...

June 20, 2025

Elon Musk confirms Tesla Robotaxi pilot launching in...

June 20, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Interview: More couples embracing non-monogamy together, often led by women, says Ashley Madison’s Paul Keable

    June 22, 2025
  • Top 4 VOO ETF stocks to watch next week

    June 22, 2025
  • Is Pinterest stock a good buy as the golden cross pattern nears?

    June 22, 2025
  • Top catalysts for Dow Jones Index this week

    June 22, 2025
  • ‘Not constitutional’: Congress evokes new War Powers Resolution to reject Trump’s strikes on Iran

    June 22, 2025
  • Trump addresses nation on ‘spectacular military success’ of US strikes on Iranian nuclear facilities

    June 22, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 6

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (1,567)
  • Editor's Pick (164)
  • Investing (185)
  • Stock (1,015)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Brazil’s Inter&Co posts 57% jump in Q1...

May 12, 2025

Alibaba leads Chinese tech rally with DeepSeek...

March 6, 2025

Why Tesla stock is sliding another 4%...

April 11, 2025