CoreWeave Falls as Bond Yields Near 15%

CoreWeave shares fell about 16% on October 14 as investors focused on rising borrowing costs for the artificial-intelligence infrastructure company. Its bonds traded at yields near 15%, adding to concern about the debt used to finance its expansion, while the company reported second-quarter net interest expense of $640 million. The share decline was reported at different points during Wednesday trading, with an earlier report putting the drop at 10% and later accounts describing a fall of about 16%. Bond-market reports said CoreWeave’s 9.625% notes due in 2032 yielded about 14.8% to 15%, while its 9.75% notes due in 2031 yielded about 14.9%. Higher yields reflect lower bond prices and indicate that investors are demanding greater returns to hold the debt. The company’s $640 million in net interest expense in the second quarter was more than double the $267 million recorded in the same quarter a year earlier. CoreWeave also raised more than $10 billion through unsecured debt and convertible bonds during the quarter and secured a $3.1 billion term loan, according to the reported figures.