CoreWeave Seeks $1.5B Debt Financing After IPO Falls Short

CoreWeave Pursues $1.5B Debt Deal After IPO Disappointment

Data center operator CoreWeave is reportedly seeking $1.5 billion in debt financing after its initial public offering (IPO) fell short of expectations.

According to the Financial Times, CoreWeave is holding a roadshow this week with bankers at JPMorgan to explore debt options. The company's executives aim to assess investor interest during these meetings. Financial Times Source

The New Jersey-based company went public in March, initially targeting a $2.7 billion raise. However, investor concerns regarding CoreWeave's substantial debt and a weakening market for AI infrastructure forced the company to reduce its target to $1.5 billion.

CoreWeave, whose clients include Microsoft, has accumulated $12.9 billion in debt over the past two years to build data centers. As of December 2024, the company reported approximately $8 billion in total debt and faces debt and interest payments totaling $7.5 billion by the end of 2026. Financial Times Source