CoreWeave Seeks $8.5B Loan as AI Infrastructure Debt Piles Up
CoreWeave is reportedly looking to raise about $8.5 billion through a delayed-draw term loan as it expands AI cloud capacity tied to Meta Platforms.
According to a Bloomberg news report on Tuesday, CoreWeave is planning to raise the financing from a bank group that includes Morgan Stanley and Mitsubishi UFJ Financial Group. The facility would be supported by a Meta contract signed last year that could generate as much as $14.2 billion in payments for CoreWeave’s services, along with a separate agreement between the companies worth more than $5 billion, inked earlier this year.
Bloomberg said the lenders are discussing pricing around 2.25 percentage points above the Secured Overnight Financing Rate, and that Morgan Stanley and MUFG are working to privately syndicate the loan to additional lenders, with closing expected in March.
The report comes as investors and lenders take a closer scrutiny at the credit structures underpinning the AI data center buildout. It was reported recently that Blue Owl Capital had struggled to line up third-party financing for a roughly $4 billion data center project in Lancaster, Pennsylvania, where CoreWeave is expected to be the tenant. Lender appetite was limited in part due to CoreWeave’s sub-investment-grade credit profile and heavy reliance on borrowing to fund capital spending.
CoreWeave had about $8 billion outstanding under existing delayed-draw term loans and roughly $14 billion of total debt as of Sept. 30 after issuing more than $2.25 billion of convertible senior notes in December. It is scheduled to report earnings on Thursday.
