CoreWeave’s 2032 Bond Yield Reaches 14.8%, Signaling Costlier New Debt

CoreWeave’s 2032 unsecured bond yielded about 14.8% on Oct. 14, signaling that investors are demanding more compensation for its credit and that new borrowing may cost more.

The bond’s 9.625% coupon is below its current yield. That yield does not immediately reset interest payments on existing fixed-rate debt, but it signals a potentially higher cost for future unsecured borrowing. CoreWeave shares fell about 16% on Oct. 14 as concern about its financing needs grew.

In the second quarter, CoreWeave generated $679 million in operating cash flow and recorded $9.4 billion in adjusted capital spending. Net interest expense was $640 million, roughly one-quarter of quarterly revenue.

CoreWeave had about $35 billion in debt and $16.5 billion in lease liabilities as of June 30. Its listed debt maturities were concentrated in 2030 through 2032: $11.149 billion in 2030, $9.389 billion in 2031 and $10.366 billion in 2032.

Bernstein maintained its Underperform rating on Oct. 15.

The listed spreads on CoreWeave’s delayed-draw term loans varied by facility. They ranged from 2.25% for DDTL 4.0 to 9.62% for DDTL 1.0; DDTL 5.5 carried a 5.50% spread. The figures underscore the different borrowing terms across the company’s financing facilities.