CoreWeave Completes $4.2 Billion Convertible Offering

CoreWeave said on Tuesday it had completed a $4.2 billion convertible bond offering, an upsized amount versus what the AI cloud provider initially targeted last week.

The company had said last Thursday that it was looking to raise $3 billion in the offering, and said it had priced $3.7 billion of the debt, due in 2033 and carrying a coupon of 2.875%, on Friday. CoreWeave’s total offering also included $500 million from initial purchasers exercising their option to buy additional notes.

CoreWeave had previously closed a $4 billion convertible senior note offering in April due in 2032, carrying a 1.75% coupon. Investors have been approaching AI-related debt with more caution amid high issuance and a wave of AI buildout concerns, while borrowing costs have continued to rise.