CoreWeave Plans $1.5 Billion Private Notes Offering

The Nvidia-backed company intends to use the proceeds for general corporate purposes, including the repayment of outstanding debt and covering fees and expenses related to the offering.

CoreWeave (CRWV), a cloud infrastructure provider backed by Nvidia (NVDA), announced on Monday that it will offer $1.5 billion in aggregate principal amount of senior unsecured notes due 2031 in a private placement.

CoreWeave’s stock edged 1.4% higher in pre-market trade. However, on Stocktwits, retail sentiment around the company dipped to ‘bullish’ from ‘extremely bullish’ a day ago amid ‘high’ levels of chatter.

The stock was also buoyed by a price target hike from Barclays ahead of second-quarter (Q2) tech earnings, which are set to kick off this week. The brokerage raised its price target on the shares from $140 to $100, maintaining an ‘Equal Weight’ rating on Monday, as per TheFly. 

Barclays cited stronger channel checks in May and June, following the initial uncertainty seen in April, and stated that it expects strong Q2 earnings results and possible guidance raises. 

The company said the notes would be guaranteed on a senior unsecured basis by certain wholly owned subsidiaries of CoreWeave. It added that the notes would be offered only to qualified institutional buyers under Rule 144A or to non–U.S. persons under Regulation S. 

CoreWeave intends to use the proceeds for general corporate purposes, including the repayment of outstanding debt and covering fees and expenses related to the offering. It has not yet disclosed the interest rate or pricing details of the notes.

The debt sale comes as Coreweave expands its footprint in AI infrastructure amid surging demand for GPU-powered cloud services. 

CoreWeave’s stock has more than quadrupled since its initial public offering (IPO) in March, earlier this year. The company is scheduled to report its second-quarter earnings results on August 14.

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