Convertible finance for neoclouds
Read the equity option, cash obligations and maturity together.
Convertible notes combine a debt claim with conversion terms linked to equity or another security. Their low stated coupons cannot be interpreted as cheap secured project debt without accounting for the option, fees, settlement rules and remaining repayment obligation.
- 01Net issue proceeds
- 02Coupon payments
- 03Conversion conditions
- 04Cash or share settlement
Identify the debt claim
Record issuer, guarantors, security, ranking, principal, maturity and interest payments. Separate corporate funding from borrowing against a specific cluster or customer contract. Keep mandatory convertible preferred equity outside a debt comparison even when its marketing presentation resembles a financing instrument.
Read conversion and settlement
Establish when holders may convert, the conversion price, adjustments and whether the issuer can settle in cash, shares or both. Consider calls, investor puts and fundamental-change provisions. A model that assumes all notes convert can conceal a cash refinancing need if conversion conditions are not met.
Reconcile proceeds and related transactions
Distinguish the initial announced size, the priced size, purchaser options and actual issuance. Deduct fees and separately identify any capped-call or other related expenditure when calculating usable proceeds. A coupon alone neither measures the equity option value nor reproduces the borrower's effective cash cost.
Use a dated example rather than a current quote
CoreWeave's 9 December 2025 announcement prices 1.75% convertible senior notes due 2031 and describes the unsecured claim and settlement choices. The announcement was a pricing event subject to closing conditions. This example illustrates why the instrument belongs in a corporate convertible category rather than a GPU loan spread league table.
Questions to take to the documents
- What remains payable if the notes never convert?
- Which party chooses cash or share settlement and when?
- What net proceeds remain after fees and related transactions?
Explore the disclosed examples
Open a register record for its dated amount, classification and source limitations. A link is not certification of all terms.
For in-house counsel
Take it to the documents
The filed wording behind this piece, for the lender’s or the borrower’s side. Previews are open; the full text is free with InfraCompute Weekly.
- Bond protectionsCovenants and holder protections in data centre and neocloud bonds, from the indentures.
- Contract library: GPU capacity contracts16 clauses quoted from filed contracts. The contracts the issuer’s revenue rests on.
- Issues list: Bond indentureBuild it from the lender’s or the borrower’s side, with where filed deals land.
- The legal desk for in-house counselContract library, issues lists, checklists and English law notes.
Sources for the examples
Selected public sources support the examples. The analytical framework is InfraCompute editorial work; source links do not imply a complete agreement or legal review.
- CoreWeave Prices Upsized $2.25 Billion Convertible Senior Notes Offering ↗Disclosure date: 2025-12-09
