Coreweave plans to issue $3 billion in convertible senior notes, with its pre-market gains narrowed to 3%.
1 hours ago
U.S. AI cloud infrastructure provider Coreweave (CRWV.O) announced plans for a private placement of convertible senior notes totaling $3 billion in principal, maturing April 1, 2033. The firm also granted initial purchasers an over-allotment option to buy up to an additional $500 million in notes within 13 days of the initial offering. The notes are senior unsecured obligations backed by an unconditional joint guarantee from Coreweave’s wholly owned subsidiary, with interest paid in cash semi-annually. Holders may convert the notes into shares upon meeting specified conditions, and the company may settle conversions in cash, Class A common stock, or a mix of both. The coupon rate and initial conversion price will be set at pricing. A portion of the proceeds will be used to purchase capped-call options to hedge equity dilution from conversions, with the rest allocated to general corporate purposes. If the over-allotment option is exercised, the additional funds will also be partially used to add to these option trades, with the remainder for corporate operations. Per market data from BIT (bit.com), Coreweave (CRWV.O)’s pre-market gains narrowed to 3%.
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