CoreWeave Seeks to Raise $3 Billion in Convertible Bonds

CoreWeave Inc., a provider of computing that powers artificial intelligence systems, kicked off a fresh round of fundraising that includes a $3 billion convertible bond issue and a vehicle for potential share sales.

The artificial intelligence cloud firm agreed a so called at-the-market offering program that allows it to sell as many as 35 million shares from time to time, according to a statement Thursday. The program will provide financing flexibility and help CoreWeave migrate its credit profile toward investment grade, the statement showed.

CorwWeave’s senior convertible bonds will be due in 2033 and the proceeds will be used for general corporate purposes, with a portion set aside for a series of derivative agreements related to the offering, according to a separate statement on Thursday. There is an option to increase the size of the offering by $500 million, the statement shows.

Read More: CoreWeave’s Wild Stock Ride Takes Toll on Its Cost to Finance AI

CoreWeave shares were roughly flat in pre-market trading on Thursday in New York.

The company is offering a coupon on the convertible bonds of 2.375% to 2.875%, according to people familiar with the matter. The offering is expected to price later Thursday, the people said, asking not to be identified as the information isn’t public.

Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Wells Fargo & Co. are working on the convertible bond offering, the people said. Representatives for the banks and CoreWeave didn’t immediately respond to requests for comment.