CoreWeave Seeks $1.5B Debt Deal After Disappointing IPO
CoreWeave pursues a $1.5B debt deal after a weaker-than-expected IPO.
Matilda
CoreWeave Seeks $1.5B Debt Deal After Disappointing IPO
CoreWeave, a prominent data center operator, is reportedly seeking a $1.5 billion debt deal following a less-than-expected IPO performance. After launching its shares in March, the company hoped to raise $2.7 billion, but concerns about its hefty debt load and a challenging AI infrastructure market led to a reduction in its target to $1.5 billion. According to sources from the Financial Times, CoreWeave is currently in talks with JPMorgan, conducting a roadshow to assess potential investor interest in new debt options. Image Credits:CoreWeave So, why is CoreWeave turning to debt after a disappointing IPO? The company, based in New Jersey, has faced challenges in the capital markets, with its initial offering falling short of expectations. Despite securing high-profile clients such as Microsoft, CoreWeave's financial position remains strained, with significant outstanding debts that include $12.9 billion raised in the past two years for data center expansions. As…
