Market Chatter: CoreWeave Tied Data Center Project Starts $1.1 Billion Junk-Bond Sale

MT Newswires Live09-22 08:00

Banks led by Goldman Sachs (GS) have started marketing about $1.1 billion of junk bonds to finance a data center sponsored by Blue Owl Capital affiliates and leased to CoreWeave (CRWV), Bloomberg reported Monday, citing people familiar with the matter.

Bloomberg reported that an investor call is scheduled for Tuesday, with the offering expected to price Wednesday. Early discussions indicated a yield in the low- to mid-9% range, though terms could change, the report said.

The Digital Drive data center near Richmond, Virginia, will have 76 megawatts of IT capacity and is fully leased to CoreWeave under a 15-year, $2.94 billion contract, Bloomberg reported. Operations are expected to begin between 2027 and 2028.

CoreWeave and Goldman Sachs did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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