Source: a CoreWeave-tied data center raised $1.1B in junk bonds at 98.5 cents on the dollar to yield 9.25%, ~2.7 percentage points above similarly rated debt (Gowri Gurumurthy/Bloomberg)
Investors demanded a steep premium to fund a CoreWeave-linked data center.
Bloomberg says the project sold $1.1 billion of junk bonds at 98.5 cents on the dollar, producing a 9.25% yield. That was about 2.7 percentage points above debt with similar ratings. The pricing points to a higher cost of capital for infrastructure tied to the AI buildout. Techmeme's note
Bloomberg says the project sold $1.1 billion of junk bonds at 98.5 cents on the dollar, producing a 9.25% yield. That was about 2.7 percentage points above debt with similar ratings. The pricing points to a higher cost of capital for infrastructure tied to the AI buildout. Techmeme's note
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