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Analysis · Structuring · 4 min read

Full, limited or none: how much parent support GPU lenders take

Recourse to the sponsor is one of the most negotiated points in a GPU loan. The public deals show every answer, sometimes within one sponsor's own facilities.

Randeep Bubbra | Lawyer | Making the next generation of infrastructure financeable · Firm profile
· Free to read · Views are personal

The short version
  1. 01CoreWeave gave full guarantees on DDTL 2.0, 5.0 and 5.5, a limited guarantee on 4.0 and a guarantee of one co-borrower on 3.0.
  2. 02Nscale's support comes from the data centre affiliate, not the parent. Nebius gave no full parent guarantee.
  3. 03The tightest pricing sits with limited or no parent support, where the customer is strong.

A GPU loan sits in a ring-fenced borrower so that lenders can rely on the GPUs and the customer contract. The open question is how much the sponsor stands behind it as well. The benchmark below shows the full range across twelve facilities.

Figure 1

Parent support across twelve GPU facilities

FacilityCustomer behind the cash flowParent supportMargin
CoreWeave DDTL 2.0 · May 2024Pools of IG and non-IG contractsFull guarantee6.00% / 6.50% / 13.00%
CoreWeave DDTL 3.0 · Jul 2025One contract (OpenAI)Guarantee of one co-borrower only4.00%
CoreWeave DDTL 4.0 · Mar 2026One IG customerLimited guarantee2.25%
CoreWeave DDTL 5.0 · May 2026Two non-IG customersFull guarantee4.50%
CoreWeave DDTL 5.5 · Aug 2026Diverse contracts, ~3 yearsFull guarantee5.50%
IREN Hardware 3 · May 2026MicrosoftLimited guarantees2.50% (notes 5.96% fixed)
Nscale Ward County · Aug 2026MicrosoftData centre affiliate guarantees2.375%
Nscale North Carolina · Aug 2026One customer contractAffiliate guarantor2.375%
Nebius · Jul 2026One IG customerNo full parent guarantee2.50%
Lambda Compute I · Oct 2026Two highly rated customersSponsor equity in buildFixed, n/d
Crusoe Iceland · Sep 2026 (launch)Customer contractsn/d4.75% to 5.00% (talk)
GMI Cloud · Sep 2026NVIDIA MSAn/dn/d
Sources: credit agreements filed with the SEC, rating releases and company releases. n/d = not disclosed. From the GPU Financing Handbook benchmark.

One sponsor, four answers

CoreWeave's own facilities show how much this is negotiated deal by deal. DDTL 2.0, 5.0 and 5.5 carry full parent guarantees. DDTL 3.0, backed by a single contract, has a guarantee of one co-borrower only. DDTL 4.0, backed by one investment-grade customer, has a limited guarantee.

Elsewhere the answers differ again. Nscale's US loans rely on guarantees from the data centre affiliate rather than the parent. IREN gave limited guarantees. Nebius's first secured GPU loan has no full parent guarantee, and Lambda's support takes the form of sponsor equity in the build.

Recourse does not buy price

Lining up parent support against margin gives a counter-intuitive result. The full-guarantee facilities price at 4.50% to 5.50% over SOFR, while the limited and no-guarantee facilities with investment-grade customers price at 2.25% to 2.50%. The customer contract, not the parent, decides the price. Parent support appears where the contracts need it.

Questions for the next term sheet

  • What exactly does a limited guarantee cover: completion, cost overruns, specific indemnities or a capped amount?
  • Does the guarantee fall away at a milestone, such as full delivery or a DSCR test?
  • Would a stronger customer contract remove the need for a guarantee altogether?
  • How do cross-default and parent insolvency triggers interact with a limited-recourse structure?

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.

Sources

  1. CoreWeave DDTL 4.0: pulse2.com
  2. CoreWeave DDTL 5.0: CoreWeave release: investors.coreweave.com
  3. Nebius release: nebius.com
  4. Nscale US loans: runtimewire.com
  5. IREN Hardware 3: SEC filing: sec.gov

Related

Randeep Bubbra | Lawyer | Making the next generation of infrastructure financeable. Firm profile. Built from public filings, company releases and rating agency reports. General information only, not legal or investment advice; views are personal and not those of any employer or client.

General information only, drawn from public documents and press reports, which are cited. It is not legal, financial or investment advice. Mention of a company or transaction does not mean the author or any firm acted on it, and nothing here is a view on any company's credit. Views are personal and are not those of any employer or client.

Randeep Bubbra

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