CoreWeave signs $2.6B credit facility to fund GPU purchases

What happened

On August 7, 2026, CoreWeave Financing DDTL V-V, LLC, an indirect subsidiary of CoreWeave, Inc., entered into a credit agreement providing a $2.6 billion delayed draw term loan facility. The facility, called the DDTL 5.5 Facility, was arranged by JPMorgan Chase Bank and MUFG Bank, with JPMorgan serving as administrative agent.

The company disclosed the agreement in a Form 8-K filed with the SEC on August 10, 2026. The filing states the facility is intended primarily to finance capital expenditures required to perform customer contracts, including the acquisition of GPU servers and related infrastructure.

CoreWeave also issued a press release on August 10 announcing the closing of the facility. The company's stock closed at $106.29 on August 10, down 1.34% from the prior close of $107.73.

Terms of the facility

The DDTL 5.5 Facility allows borrowings in one or more draws until the commitment termination date in December 2026. The maturity date is September 1, 2031.

Loans under the facility bear interest at either Term SOFR plus a margin of 5.50% per annum, or a base rate plus a margin of 4.50% per annum. The borrower also pays an undrawn fee of 0.50% per annum on the average daily undrawn portion.

The obligations are guaranteed by CoreWeave, Inc. and certain subsidiaries, and are secured by substantially all assets of the borrower and its subsidiaries, plus a pledge of 100% of the equity interests in the borrower.

The borrower must maintain a debt service coverage ratio of at least 1.35x, beginning the first full calendar month after commitments are reduced to zero or after December 31, 2026, whichever comes first. The agreement includes customary negative covenants and events of default, including cross-defaults and change of control provisions.

What this means

A Form 8-K is a current report that public companies must file with the SEC to disclose major events that shareholders should know about. Items 1.01 and 2.03 are the sections used to report entering into a material agreement and creating a direct financial obligation. Item 7.01 covers Regulation FD disclosure, which is how a company shares information with the public to ensure fair disclosure.

A delayed draw term loan is a type of credit facility where the borrower can draw funds at multiple times up to a certain deadline, rather than receiving the entire loan at once. This structure allows CoreWeave to borrow only as needed, which can be useful for funding capital expenditures like GPU servers that are purchased on a rolling basis.

The high interest margin (5.50% over SOFR) reflects the risk associated with this debt. CoreWeave is a provider of cloud computing services, including GPU infrastructure, and this facility is specifically tied to meeting customer contracts. The delayed draw feature and the December 2026 commitment termination date suggest the company expects to incur these costs over the coming months.

The 1.35x debt service coverage ratio covenant means the borrower must generate enough cash flow to cover its debt payments by a comfortable margin. This is a common protection for lenders.

The filing does not specify the exact customer contracts or the number of GPU servers to be acquired, so the full scope of the capital expenditures is not disclosed.