Latest news with #debtOffering
Yahoo
12 hours ago
- Business
- Yahoo
Musk's xAI Sweetens Debt Offering as Investors Face Deadline
(Bloomberg) -- Elon Musk's artificial intelligence startup xAI Corp. offered investors sweeter pricing on its $5 billion debt offering Friday, the same day Morgan Stanley is wrapping up commitments for the deal. Security Concerns Hit Some of the World's 'Most Livable Cities' One Architect's Quest to Save Mumbai's Heritage From Disappearing JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads NYC Congestion Toll Cuts Manhattan Gridlock by 25%, RPA Reports Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown The package now includes $3 billion of bonds with a 12.5% yield, a $1 billion fixed-rate term loan with a 12.5% interest rate and a $1 billion term loan B priced at 7.25 percentage points over the benchmark rate at a discount of 96 cents on the dollar, according to a person familiar with the matter. Each of the components had been priced at lower rates and the term loan B had a smaller discount. Some investors expected the company would need to raise yields on the debt to close the deal. The offering launched earlier this month and has been impacted by Musk's fallout with US President Donald Trump, as well as investor concerns about xAI's financial wherewithal. The company decided to raise another $4.3 billion in equity and change some terms on debt documents to assuage those worries, Bloomberg previously reported. Commitments were originally due on Tuesday, but Morgan Stanley extended the time frame. Spokespeople for xAI and the bank did not immediately respond to requests for comment. Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? The US Has More Copper Than China But No Way to Refine All of It Luxury Counterfeiters Keep Outsmarting the Makers of $10,000 Handbags Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? ©2025 Bloomberg L.P. Sign in to access your portfolio
Bloomberg
13 hours ago
- Business
- Bloomberg
Musk's xAI Sweetens Debt Offering as Investors Face Deadline
Elon Musk's artificial intelligence startup xAI Corp. offered investors sweeter pricing on its $5 billion debt offering Friday, the same day Morgan Stanley is wrapping up commitments for the deal. The package now includes $3 billion of bonds with a 12.5% yield, a $1 billion fixed-rate term loan with a 12.5% interest rate and a $1 billion term loan B priced at 7.25 percentage points over the benchmark rate at a discount of 96 cents on the dollar, according to a person familiar with the matter. Each of the components had been priced at lower rates and the term loan B had a smaller discount.
Yahoo
a day ago
- Business
- Yahoo
Bitdeer Technologies (BTDR) Falls 7% After $330-Million Debt Offer
We recently published a list of 10 Stocks Take A Shocking Nosedive. Bitdeer Technologies Group (NASDAQ:BTDR) is one of the worst-performing stocks on Thursday. Bitdeer Technologies fell by 7.13 percent on Wednesday to end at $11.8 apiece as investors unloaded portfolios following plans to raise $330 million in fresh funds through a debt offering. In a statement, Bitdeer Technologies Group (NASDAQ:BTDR) said that it plans to issue convertible senior notes to qualified institutional investors until June 23, 2025. The notes carry a yield rate of 4.875 percent to be paid semiannually on every January 1 and July 1 until 2031, unless earlier converted, redeemed or repurchased. According to Bitdeer Technologies Group (NASDAQ:BTDR), it would allocate $129.6 million of the proceeds to pay the cost of the zero-strike call option transaction which it entered into with an affiliate of one of the institutional investors. A construction team in a mining datacenter building work site with plans and equipment in hand. Meanwhile, some $36.1 million will be spent to pay the cash consideration for the concurrent note exchange transactions that it has entered into, while the remaining balance will be used for its data center expansion, ASIC based mining rig development, as well as working capital and other general corporate purposes. While we acknowledge the potential of BTDR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Bloomberg
13-06-2025
- Business
- Bloomberg
JPMorgan Readies $6.5 Billion Skechers Debt Sale for Next Week
JPMorgan Chase & Co. plans to kick off a $6.5 billion debt offering to support private equity firm 3G Capital 's purchase of footwear maker Skechers as soon as next week, according to a person with knowledge of the matter. The financing is expected to include $4 billion of secured debt and $2.5 billion of unsecured debt, the latter of which would allow for a 'payment-in-kind' feature with a toggle option, Bloomberg previously reported. The PIK component means the borrower can choose whether to pay interest in cash or by issuing more debt.
Yahoo
23-05-2025
- Business
- Yahoo
Why Shares of Nvidia-Backed CoreWeave Have Blasted 39% Higher This Week
CoreWeave announced an upsized $2 billion debt offering this week. One Wall Street analyst nearly doubled his price target on the stock. Since a disappointing IPO earlier this year, shares of CoreWeave have soared in recent weeks. 10 stocks we like better than CoreWeave › Surging U.S. Treasury yields may be pressuring the broader market, but they aren't slowing down the artificial intelligence (AI) data center company CoreWeave (NASDAQ: CRWV). Since last Friday, the stock has blasted roughly 39% higher, as of 11:41 a.m. ET Thursday. CoreWeave is having a huge week, due to several big announcements. On Wednesday, shares surged after the Nvidia-backed company announced a $2 billion debt offering that matures in June 2023, with the notes yielding 9.25%. The raise came in half a billion dollars higher than expected and was reportedly five times oversubscribed, according to Barron's. Also on Wednesday, Citigroup analyst Tyler Radke maintained a neutral, high-risk rating on the stock, but more than doubled his price target from $43 to $94. Radke cited the company's first-quarter earnings report last week, showing a continuation of strong AI demand. Radke said in his research note: Overall, we think the print reinforces CoreWeave's high-growth status, especially with recent $4B OpenAI expansion deal, and likely assuages investor concerns around AI capex/infrastructure slowing. Shares have gone vertical ... While we'd argue a portion of the rerating is justified, given strong Azure/hyperscaler numbers and capex... we'd like to see more progress on profitability and more customer diversification. Just a few months ago, many investors saw CoreWeave's highly anticipated IPO as a failure because it was priced much lower than management had hoped. Since then, the stock is up 176% and trades at over a $55 billion market cap. While CoreWeave should be a big beneficiary of continued AI success, remember that the company is not yet profitable. For this reason, I'd recommend investors start small and then dollar-cost average into a position over time because the stock could be susceptible to big moves in both directions. Before you buy stock in CoreWeave, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and CoreWeave wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $644,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $807,814!* Now, it's worth noting Stock Advisor's total average return is 962% — a market-crushing outperformance compared to 169% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Citigroup is an advertising partner of Motley Fool Money. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Why Shares of Nvidia-Backed CoreWeave Have Blasted 39% Higher This Week was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
