CoreWeave completes $4.2 billion convertible notes offering, upsized from $3 billion
The 2.875% notes due 2033 settled today with an initial conversion price near $97.85, a 22.50% premium to CoreWeave's September 17 close of $79.88
Published
Chart: CRWV, one-minute prices, three sessions
CoreWeave has closed its private offering of convertible senior notes, raising $4.2 billion in aggregate principal, up from the $3 billion originally proposed. The increase includes $500 million added after initial purchasers exercised in full their option to buy more notes.
The notes carry a 2.875% coupon and mature in 2033. Their initial conversion price is about $97.85 a share, a 22.50% premium over CoreWeave's September 17 closing price of $79.88. The offering settled today.
Net proceeds came to $4,137.0 million. Part of that funded capped call transactions with a cap price of $199.70 a share, a structure meant to limit dilution for existing shareholders if the stock rises. The rest is earmarked for general corporate purposes.
The jump from a proposed $3 billion to a completed $4.2 billion points to strong demand from institutional buyers, even after an initial skeptical reaction in the market. The conversion premium and the capped calls give existing equity holders some protection against dilution, and the new capital lets CoreWeave fund its AI infrastructure buildout without selling shares at current prices. The size of the upsizing suggests investors have largely moved past their early concerns about the deal.