CoreWeave $CRWV ( ▲ 22.99% ) may have seen its stock and bonds cool off from year highs, but demand for its latest debt raise is anything but weak.
The company said Tuesday that its planned $2 billion convertible note sale is now $2.25 billion after strong investor interest. The deal could still grow by another $337.5 million if the additional option is exercised.
The notes mature in December 2031 and carry a 1.75% coupon. They can convert into shares at about $107.80, which is roughly 25 percent above Monday’s close but still well below CoreWeave’s peak. The stock has traded near that level within the past month, making the conversion price realistic for investors who are betting on a rebound.
Shares fell more than 9 percent at their lows yesterday before recovering to finish down 2.4 percent.
About 13 percent of the proceeds are earmarked for capped call transactions to soften dilution if the notes do convert. The rest will go toward general corporate use.
CoreWeave never fully capitalized on its sky-high equity valuation from June through October with a fresh stock offering. Its failed all-stock bid for Core Scientific was arguably the closest it came. Now, the company is leaning on convertible debt instead, giving investors a path to equity if the rally ever returns.