CoreWeave lifts convertible notes offering to $3.7 billion from $3 billion
The increase comes days after shares fell to a low on news of the original $3 billion plan.
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Chart: CRWV, one-minute prices, three sessions
CoreWeave has raised the size of its convertible senior notes offering to $3.7 billion, up from the $3 billion first proposed. The company has also given initial purchasers an option to buy up to $500 million more, and it has set up a separate plan to sell up to 35 million shares over time.
Shares turned negative and hit a low after the original $3 billion offering was proposed. The convertible structure lets CoreWeave raise money at a lower coupon than a straight bond sale would require, a distinction that matters given CoreWeave's speculative-grade credit rating has already made its debt more expensive to issue.
The fundraising has coincided with new business for the company, including a customer win with Hudson River Trading, as CoreWeave continues to build out its artificial intelligence infrastructure.
The ability to increase the offering by 23% to $3.7 billion, after that initial negative reaction, points to enough institutional demand to cover CoreWeave's capital needs for that buildout. It also pushes back against doubts about whether speculative-grade borrowers can still tap this market, even as CoreWeave's junk rating keeps its borrowing costs elevated.