CoreWeave's $8.5 Billion Loan Prices the Customer's Credit, Not Its Own

CoreWeave is borrowing up to $8.5 billion at investment-grade rates against graphics-processor servers and the customer contract that pays for them, a structure that prices the customer's credit rather than its own.

The facility, DDTL 4.0, was signed on March 30 and closed on March 31. Moody's rates it A3 and DBRS rates it A (low).

The floating-rate tranche pays the Secured Overnight Financing Rate plus 2.25 percentage points. The fixed-rate tranche is priced at 2 percentage points over Treasuries, about 5.9% at signing, and undrawn commitments carry a 0.50% annual fee, according to the quarterly report. The loan matures in March 2032, and draws are available through June 30, 2027.

Borrowing capacity starts at about $7.5 billion and rises to $8.5 billion as the underlying assets stabilize. By June 30, CoreWeave had drawn $2.837 billion, about a third of the facility (Rackline calculation): roughly $1.4 billion floating and $1.5 billion fixed, as rounded in the filing.

The debt sits in one subsidiary, CoreWeave Compute Acquisition Co. VIII, and is secured by substantially all of its assets and a pledge of its equity. It is non-recourse to the parent, except for limited guarantees related to customary non-recourse carve-out obligations, according to CoreWeave's quarterly report.

DDTL 4.0 is the fourth generation of a financing CoreWeave has repeated since 2023, each borrowed by a separate subsidiary against GPU servers. CoreWeave Compute Acquisition Co. II entered the $2.3 billion DDTL 1.0 in July 2023. CoreWeave Compute Acquisition Co. IV entered the $7.6 billion DDTL 2.0 in May 2024 and added a $3.0 billion DDTL 2.1 tranche in September 2025. Two further subsidiaries entered the $2.6 billion DDTL 3.0 in July 2025, and CoreWeave Financing DDTL V entered a $3.1 billion DDTL 5.0, priced at SOFR plus 4.50 percentage points, on May 15, 2026.

What sets DDTL 4.0 apart is recourse. CoreWeave unconditionally guarantees every other DDTL facility, so those count as recourse debt; DDTL 4.0 is the only one classed as non-recourse. At June 30, effective interest rates on the guaranteed facilities ranged from 9% to 15%: 15% on DDTL 1.0, which matures in March 2028, 11% on DDTL 2.0 and 9% on DDTL 2.1, 3.0 and 5.0. The rate on DDTL 4.0 was 7%.

CoreWeave reported total debt principal of $35.6 billion at June 30. Recourse debt was about $31.8 billion: $10.8 billion outstanding under the guaranteed DDTL facilities, $10.0 billion of senior notes, $6.6 billion of convertible senior notes, $4.2 billion of OEM and software-license financing and a $189 million Magnetar loan. Non-recourse debt was $3.7 billion, DDTL 4.0's $2.837 billion plus $882 million of non-recourse OEM financing (subtotals are a Rackline calculation from the debt table). Net of discounts and issuance costs, recourse debt was $31.4 billion.

Undrawn availability across the revolving credit facility and DDTL 3.0, 4.0 and 5.0 was $10.0 billion. Net interest expense was $640 million in the second quarter, against $267 million a year earlier, and $1.176 billion in the first half.

The proceeds are primarily to finance the capital spending needed to perform a single customer contract, according to the filing. CoreWeave has not named the customer. It described the customer only as a "leading AI enterprise."

Blackstone Credit & Insurance anchored the loan, and insurance investors were among the other lenders. MUFG and Morgan Stanley were co-structuring agents and joint bookrunners, with Goldman Sachs and JPMorgan as additional coordinating lead arrangers. MUFG Bank is administrative agent.

Rackline analysis: the filings show two credit tiers inside one company. Debt backed by the parent, whether guaranteed loans or senior notes, carries effective rates of 9% to 15%. The single facility tied only to its subsidiary's servers and one customer contract carries 7% and an A3 / A (low) rating. In its March 31 filing, CoreWeave said the facility was primarily to finance capital expenditures "required to perform a customer contract." Lenders, in effect, are underwriting the contract and the walled-off borrower rather than the operator. DDTL 4.0 is about 8% of CoreWeave's debt ($2.837 billion of $35.6 billion, Rackline calculation).

At June 30, CoreWeave's bankruptcy-remote financing subsidiaries held $18.2 billion of non-current assets securing their debt, assets that can be used only to settle those entities' obligations, according to the quarterly report.