CoreWeave Prices $3.7 Billion Convertible Bond Offering

CoreWeave said on Friday it had priced $3.7 billion in convertible bonds, more than the AI cloud provider had previously said it was targeting.

The convertible senior notes will be due in 2033 and carry a coupon of 2.875%, at the top of the pricing range marketed to investors and up from the 1.75% coupon on CoreWeave’s 2032 convertible sale in April. Borrowing costs have been rising broadly, while investors have also been demanding more compensation to hold some AI-related debt amid heavy issuance and concerns about the risks of AI buildouts.

CoreWeave had said on Thursday that it was seeking to raise $3 billion in the offering. Shares in the company rose roughly 1% in morning trading on Friday.