Summary
CoreWeave, Inc. (CRWV) announced a significant financing event through its indirect subsidiary, CoreWeave Financing DDTL V, LLC. The company has secured a $3.1 billion delayed draw term loan facility (DDTL 5.0 Facility) to fund critical capital expenditures, primarily for acquiring GPU servers and related infrastructure necessary to fulfill customer contracts. This substantial debt issuance underscores CoreWeave's aggressive growth strategy and its commitment to scaling its AI and cloud infrastructure capabilities to meet increasing market demand. The facility, with a maturity date of November 15, 2031, is backed by a parent guarantee from CoreWeave, Inc. and secured by substantially all assets of the borrower and its subsidiaries. While the loan offers flexibility with a draw period extending until September 2026, it also comes with financial covenants, including a minimum debt service coverage ratio of 1.35x to be maintained from late 2026. The interest rates are tied to SOFR or base rates, with applicable margins and a commitment fee on undrawn amounts, reflecting the current market conditions for leveraged financing.
Key Highlights
- 1CoreWeave secured a $3.1 billion delayed draw term loan facility (DDTL 5.0 Facility) through its subsidiary.
- 2The funds will primarily finance capital expenditures for GPU servers and infrastructure to support customer contracts.
- 3The facility has a maturity date of November 15, 2031, with a draw period extending until September 2026.
- 4The loan is guaranteed by CoreWeave, Inc. and secured by the borrower's and its subsidiaries' assets.
- 5Key financial covenants include a minimum debt service coverage ratio of 1.35x, commencing in late 2026.
- 6Interest rates are variable, based on SOFR (plus 4.50% margin) or Base Rate (plus 3.50% margin), with a 0.00% floor.
- 7A commitment fee of 0.50% per annum is payable on the average daily undrawn portion of the facility.