Blue Owl affiliates issued $1.1 billion in bonds for the CoreWeave data center project, with a coupon of 9.25%, 2.7 percentage points higher than comparable bonds.
Blue Owl Capital affiliates priced $1.1 billion in high-yield bonds for AI hashrate provider CoreWeave's data center projects at a yield of 9.25%, approximately 2.7 percentage points higher than the average yield for similarly rated bonds. S&P Global Ratings on Tuesday rated the issuance BB-, three notches below investment grade, citing exposure to a single speculative-grade tenant, CoreWeave, as a key risk. This deal has set a new price for the credit risk associated with the AI hashrate boom and could serve as a benchmark for the financing costs of subsequent AI data center projects.
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