CoreWeave shares dropped 12% after a report said Blue Owl Capital did not find lenders willing to finance a $4 billion data center project that CoreWeave will occupy.
The planned facility is in Lancaster, Pennsylvania, roughly 80 miles west of Philadelphia. Sources cited in the report said interest from potential lenders was limited, and at least one lender declined the loan specifically because of concerns about CoreWeave's creditworthiness.
Rating agency S&P Global Ratings assigns CoreWeave a below-investment-grade score of B+.
A senior executive at a large specialty lending firm was quoted as telling reporters: "We saw it. We passed." That remark was cited as evidence that at least some prospective lenders reviewed the opportunity and chose not to participate.
Blue Owl Capital, which is co-developing the Lancaster data center, provided a response noting that it had "considered" third-party financing for the site "as we would with any transaction as we explore alternatives before choosing the most attractive path forward." The firm added that construction is already underway and that the project "is fully funded, on time, and on budget."
The report makes clear there is uncertainty about whether Blue Owl will use only its own capital to complete the build. The story states that if third-party debt is not obtained, Blue Owl could face a sizeable cash requirement to finish construction of the data center.
Market reaction to the financing questions was swift: CoreWeave's stock fell in response to the report, reflecting investor concern about the funding outlook for a major customer-occupied facility.
At present the public details are limited to lenders' reported lack of interest in the Lancaster financing, CoreWeave's B+ rating from S&P Global Ratings, and Blue Owl's statement that the project is under construction and fully funded. The report cited a direct quote from a senior lending executive who said their firm reviewed the opportunity and declined to participate.
Bottom line - A report that lenders showed tepid appetite for financing the $4 billion Lancaster data center coincided with a double-digit drop in CoreWeave shares. Blue Owl says the project remains under construction and financially supported, but it is not publicly clear whether that support comes entirely from the firm's own balance sheet.