CoreWeave, whose stock has been yanked around all week on the Nvidia saga, is back at the borrowing table with a $4 billion loan ask. True to its word that it will offer collateral for credit going forward — its unsecured bonds got hammered earlier this fall in one of the early signs of nerves in the AI financing market — the new debt will be backed by contracts with Meta, allowing CoreWeave to coast on Meta’s AA coattails.
The loan, which will be syndicated by Morgan Stanley and Mitsubishi UFJ, has gotten a warm reception in early marketing, according to a person familiar with the matter, rewarding CoreWeave’s plan to steer into the market skid. It’s aiming for an all-in interest rate of around 7.5%, which would be far cheaper than the nearly 16% yield its unsecured bonds have hit.
— Ellen DiMauro
