CoreWeave Reportedly Improves Terms on $2.6 Billion Loan Amid Rising Debt Costs

AI infrastructure provider CoreWeave Inc. has reportedly improved the terms on a $2.6 billion loan to make it more attractive to investors, according to a report from Bloomberg. The move comes as the cost to protect the company's debt against default has risen sharply, signaling increased caution in the junk-debt market.

More Favorable Terms for Lenders

To entice investors, CoreWeave has made its delayed draw term loan more lucrative. According to people familiar with the matter cited by Bloomberg, the key adjustments include:

• Higher Interest Rate: The pricing spread has been widened by as much as 1.25 percentage points to a potential high of 5.5 percentage points over the benchmark rate.
• Deeper Discount: The loan is now being offered at a wider discount of 97 cents on the dollar, down from 99 cents previously. This change directly increases the effective yield for lenders.

The cost to insure CoreWeave's debt against default for five years has reportedly increased by more than 50% this month, reaching its highest level since December and indicating heightened perceived risk among investors.

Ad

Funding Massive AI Expansion

The proceeds from the loan are earmarked for the acquisition and installation of graphics processing units (GPUs) and other critical hardware. This expansion is part of CoreWeave's plan to spend over $34 billion on AI infrastructure this year alone.

The enhanced computing capacity will serve key clients under take-or-pay contracts, including AI company Anthropic PBC. It will also support two of the largest U.S. market makers, Jane Street Group and Hudson River Trading, which rely on high-performance computing for their sophisticated trading algorithms.