CoreWeave Reportedly Plans $4B Investment-Grade Loan After Strong Earnings Beat — But Shares Fall After-Hours On Nvidia CEO Drama
Yahoo! Finance ·
Key points
- CoreWeave is pursuing at least $4 billion in an investment-grade loan, potentially to be launched next week, with Morgan Stanley and Mitsubishi UFJ Financial Group as lead arrangers; the loan would be backed by chips and related contracts, mirroring the structure of an $8.5 billion facility raised in March that benefited from Meta Platforms’ contracts.
- The proposed loan is expected to price at a yield of 7% to 7.5%, roughly half the yield on the company’s existing high-yield debt, signaling a move to lower financing costs as it funds its data-center expansion.
- On the earnings call, executives stated the company will not rely on unsecured debt at current yields, addressing investor concerns about heavy market funding for its buildout, while reaffirming the project’s progress.
- CoreWeave reported Q3 revenue of $3.66 billion, up 168% year over year, and lifted its full-year 2026 revenue target to $13.0–$13.3 billion, surpassing both previous guidance and street estimates; backlog stood at about $132.5 billion at quarter’s end.
- CEO Michael Intrator noted that prepayments and deposits from customers reached $9 billion, describing them as the cheapest capital source, and he canceled pre-arranged stock-sale plans to limit future sales to restricted stock units for tax purposes.
- Shares surged 25% in regular trading but dipped around 5% after hours following reports that Nvidia—CoreWeave’s main chip supplier and a major investor—was considering ousting its CEO amid internal scrutiny, adding near-term volatility to the stock narrative.
Summary
CoreWeave plans to raise at least $4 billion via an investment-grade loan led by Morgan Stanley and MUFG to calm investor concerns about debt-fueled growth. The company posted a strong Q3, with revenue of $3.66 billion and a raised full-year 2026 outlook, and reported a $132.5 billion backlog while signaling it does not intend to fund operations through unsecured debt at prevailing yields. The stock rose in regular trading but fell after hours amid Nvidia-related CEO drama, which also involves CoreWeave’s key chip supplier and investor. Management reiterated that the data-center expansion remains on track and highlighted substantial prepayments as a cheap capital source. Looking ahead, the financing aims to stabilize funding costs as the company sustains rapid growth and navigates near-term market tensions.
This summary was written with AI. The full story has every detail.