Summary
CoreWeave, Inc. (CRWV) has announced the successful closing of an $8.5 billion delayed draw term loan facility (DDTL 4.0 Facility) through its indirect subsidiary, CoreWeave Compute Acquisition Co. VIII, LLC. This substantial financing round is primarily earmarked for significant capital expenditures, specifically to acquire GPU servers and related infrastructure necessary to fulfill a key customer contract. The facility provides a flexible draw period extending to June 2027, with a maturity date of March 31, 2032, indicating a long-term strategic investment. The DDTL 4.0 Facility offers a blended interest rate structure, including options for SOFR or base rate loans with applicable margins, as well as fixed-rate options tied to U.S. Treasury yields. The company will also pay an undrawn fee of 0.50% per annum on the unused portion of the facility. The loan is secured by substantially all assets of the borrowing subsidiary and its subsidiaries, with a limited recourse guarantee from the Parent company, CoreWeave, Inc., for specified "bad acts."
Key Highlights
- 1CoreWeave secured an $8.5 billion delayed draw term loan facility (DDTL 4.0 Facility) through its subsidiary CCAC VIII.
- 2The primary purpose of the financing is to fund capital expenditures for GPU servers and infrastructure to support a customer contract.
- 3The facility allows for draws until June 2027, with a long-term maturity date of March 31, 2032.
- 4Interest rates include both floating (SOFR/base rate with applicable margins) and fixed options tied to U.S. Treasury yields.
- 5An undrawn fee of 0.50% per annum will be paid on the unused portion of the facility.
- 6The loan is secured by the assets of CCAC VIII and its subsidiaries, with a limited recourse guarantee from CoreWeave, Inc.
- 7Key financial covenants include maintaining a Debt Service Coverage Ratio of at least 1.15x starting in mid-2027.