Morgan Stanley and MUFG are leading a proposed investment grade delayed draw term loan of at least $4 billion for CoreWeave that could launch as soon as next week, backed by GPUs and customer contracts, Bloomberg reported. The facility is expected to yield 7% to 7.5%, roughly half the rate on the AI cloud provider’s junk bonds, and finance more than 90% of associated capital spending. CoreWeave shares dropped 10.9% in Thursday premarket trading following the report, reversing part of Wednesday’s 24.7% surge, which was the stock’s best trading day since April 2025.

The secured loan is central to CoreWeave’s effort to fund its 2026 capital expenditure plan of $37 billion to $39 billion while avoiding the unsecured bond market, where its yields recently topped 16%. CEO Michael Intrator said on the company’s earnings call that CoreWeave “will not use the unsecured debt market to fund our business at current yields, nor do we need to,” and told CNBC on Wednesday that he canceled his 10b5-1 stock selling plan and had better uses for capital than buying back distressed bonds because adjusted operating returns would far exceed 16%. Alongside the loan, the company expects to collect about $9 billion in customer prepayments and deposits over the next three months and raise less than $5 billion in new parent level capital through 2027.

CoreWeave’s Wednesday rally had lifted the broader AI and semiconductor sector after the company reported third quarter revenue up 168% to $3.66 billion, a $132.5 billion backlog, and raised its 2026 revenue forecast to $13 billion to $13.3 billion. Still, rapid expansion pushed total debt to $46.9 billion and third quarter cash burn to $7.5 billion, with fourth quarter interest expense projected at $1.05 billion to $1.15 billion. Short seller Jim Chanos noted that annualized third quarter revenue per average active MW fell year over year to $9.2 million and that it still takes CoreWeave $4 in capital to generate $1 in revenue.