CoreWeave, Inc. (CRWV) saw its stock price plummet 5.35% in pre-market trading on Monday, as investors reacted to the company's announcement of a significant debt increase. The AI infrastructure company revealed plans to offer $1.5 billion in senior notes due 2030 and enter into a loan facility for up to $2.6 billion.
According to the company's filing, CoreWeave intends to use the proceeds from the $1.5 billion senior notes offering for general corporate purposes, including repaying outstanding debts and covering fees and expenses related to the offering. The notes will be guaranteed on a senior unsecured basis by CoreWeave Cash Management LLC, a wholly-owned subsidiary.
Additionally, CoreWeave disclosed its plans to enter a loan facility for up to $2.6 billion, referred to as the DDTL 3.0 Facility. This facility is expected to fund equipment and infrastructure, although the company noted that the entry into this facility is subject to uncertainties. The substantial increase in debt appears to have sparked concerns among investors, leading to the significant pre-market decline in CoreWeave's stock price.
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