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.

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