CoreWeave prices $2 billion senior notes offering

LIVINGSTON, N.J. - CoreWeave, Inc. (Nasdaq: CRWV), a cloud platform provider specializing in accelerated computing for AI applications, with a current market capitalization of $43.31 billion and trailing twelve-month revenue of $2.71 billion, has upsized and priced a private offering of senior notes. The company announced the pricing of $2 billion in aggregate principal amount of 9.250% senior notes due June 1, 2030, marking an increase from the initial $1.5 billion targeted. According to InvestingPro analysis, the company currently shows signs of rapid cash burn, making this debt offering particularly significant.

The closing of this offering is anticipated to occur on May 27, 2025, contingent upon customary closing conditions. The notes will be issued at par and are guaranteed on a senior unsecured basis by CoreWeave Cash Management LLC, CoreWeave’s wholly-owned subsidiary.

Proceeds from the sale are intended for general corporate purposes. These include the repayment of existing debt and covering the costs associated with the offering.

The offering is directed at qualified institutional buyers according to Rule 144A under the Securities Act of 1933, as well as non-U.S. persons under Regulation S. The notes and related guarantees have not been registered under the Securities Act or any state securities laws and will be offered only through exemptions or transactions not subject to registration requirements.

CoreWeave, established in 2017, operates data centers in the United States and Europe, providing enterprises and AI labs with cloud solutions for accelerated computing. The company’s stock has shown remarkable momentum, currently trading near its 52-week high of $96.35, though InvestingPro analysis suggests the stock may be overvalued at current levels.

This press release contains forward-looking statements, including expectations regarding the use of proceeds from the notes offering. These statements are subject to various risks and uncertainties, including CoreWeave’s ability to close the offering on favorable terms and broader market and economic conditions that could impact the offering.

The information is based on a press release statement and involves statements that are forward-looking in nature. CoreWeave’s filings with the Securities and Exchange Commission, including its most recent quarterly report, detail the potential risks and uncertainties that could affect actual results.

In other recent news, CoreWeave has reported robust first-quarter earnings, surpassing revenue expectations by 15 percentage points. This strong performance prompted Citi analyst Tyler Radke to raise the company’s stock target from $43.00 to $94.00, although he maintained a Neutral rating, citing mixed results in areas like remaining performance obligations and capital expenditures. CoreWeave’s recent $4 billion expansion deal with OpenAI is seen as a positive development, easing concerns about a slowdown in AI-related investments. The company has also announced a $1.5 billion senior notes offering due in 2030, intended for general corporate purposes, including debt repayment. This debt issuance has been rated by multiple agencies, with Moody’s assigning a Ba3 corporate family rating and S&P Global Ratings giving it a ’B+’ issuer credit rating, both reflecting CoreWeave’s strong market position but high financial leverage. Fitch Ratings awarded CoreWeave a ’BB-’ rating with a positive outlook, highlighting the company’s stable revenue streams and strong EBITDA growth potential. Despite its high leverage, CoreWeave’s strategic partnerships and significant contracted revenue backlog contribute to its favorable outlook. However, the company faces risks related to customer concentration and the need for ongoing contract renewals to sustain growth.

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