--- title: "SOFR: what it means · The AI Compute Race · DRYBURGH" source: https://dryburgh.com/vol1/glossary/sofr description: "SOFR: Secured Overnight Financing Rate, the benchmark that replaced Libor, over which floating-rate loans are priced." --- # SOFR What does “SOFR” mean? SOFRSecured Overnight Financing Rate, the benchmark that replaced Libor, over which floating-rate loans are priced. Row 26 of the Scorecard quotes CoreWeave’s spreads over it. *Chapter 10.* From *The AI Compute Race*. [Read the book](https://dryburgh.com/vol1#buy) ## Where the book uses it - [Chapter 10 — The Lender’s Decision](https://dryburgh.com/vol1/notes/chapter-10)Who is lending the money and who bears the loss: the bonds, leases and guarantees behind the largest campuses, and how the paper reaches ordinary retirement accounts. ## Where the record uses it - Scorecard indicator [CoreWeave 2026 borrowing spread ladder](https://dryburgh.com/vol1/scorecard#row-26) ## Sources that use it - CoreWeave, “CoreWeave Closes $2.6 Billion Loan Facility, Expanding Financing Flexibility for AI Infrastructure,” 10 August 2026 (SOFR+550 bp; “an approximate five-year maturity while its underlying customer contracts average approximately three years in length”; unlike the company’s prior delayed-draw facilities, “backed by customer contracts extending through the maturity of the debt”; “The facility received ratings of Ba2 from Moody’s and BB+ from Fitch, reflecting the strength of the collateral and structural protections supporting the transaction”). [In the Sources](https://dryburgh.com/vol1/sources/company#coreweave-tl55) - CoreWeave, “CoreWeave Closes $3.1 Billion Loan Facility,” 18 May 2026 (SOFR+450 bp; Ba2/BB+; “Proceeds from the DDTL 5.0 Facility will support the purchase and deployment of infrastructure dedicated to customer contracts with two large, non-investment grade customers”). [In the Sources](https://dryburgh.com/vol1/sources/company#coreweave-tl5) - CoreWeave, “CoreWeave Closes Landmark $8.5 Billion Financing Facility, Achieving First Investment-Grade Rated GPU-Backed Financing,” 31 March 2026 (SOFR+225 bp; “The DDTL 4.0 Facility received ratings of A3 by Moody’s and A (low) by DBRS, respectively, representing the first investment-grade rated financing secured by HPC infrastructure and an associated customer contract”); the release’s own two-stage sentence: “borrow up to approximately $7.5 billion initially, with the ability to increase total borrowing capacity to $8.5 billion as underlying assets reach stabilization”; “a floating rate tranche financed at SOFR + 2.25% and a fixed rate tranche financed at approximately 5.9%”; matures March 2032; secured by substantially all assets of CoreWeave Compute Acquisition Co. VIII, LLC. [In the Sources](https://dryburgh.com/vol1/sources/company#coreweave-tl4) - CoreWeave, Inc., “CoreWeave Closes Landmark $8.5 Billion Financing Facility, Achieving First Investment-Grade Rated GPU-Backed Financing” (capitalized throughout in the exhibit), 31 March 2026, Exhibit 99.1 to the Form 8-K of 30 March 2026, accession 0001769628-26-000129 (the release’s second bullet: “First of a kind non-recourse facility, with an A3 / A (low) rating, marking the first HPC infrastructure delayed draw term loan to achieve investment grade status”; an $8.5 billion delayed draw term loan, about $7.5 billion of it available initially and $8.5 billion “as underlying assets reach stabilization”; “a floating rate tranche financed at SOFR + 2.25% and a fixed rate tranche financed at approximately 5.9%”; maturing March 2032 and secured on substantially all assets of CoreWeave Compute Acquisition Co. VIII, LLC; opened live on EDGAR and archived by stage-309a on 21 September 2026, 8,862 bytes, md5 a36c2018c780b7d538a167912851a751; the facility “was anchored by Blackstone Credit & Insurance and included participation from a diverse group of global financial institutions, asset managers, and insurance investors,” no insurer named and no share given). [In the Sources](https://dryburgh.com/vol1/sources/company#coreweave-pr-ddtl4-mar26) - Lambda, “Lambda closes $926 million senior secured Term Loan B facility,” 27 August 2026 (Baa2; SOFR plus 3.00 percent at 99.5; maturity 31 December 2030; fully amortizing against customer cash flows and the useful life of the GPU servers; no life, residual or advance rate published; “on a fully amortizing schedule aligned with the contracted cash flows and useful life of the underlying GPU infrastructure”). [In the Sources](https://dryburgh.com/vol1/sources/company#lambda-tlb-aug26) And 14 more: [search the Sources](https://dryburgh.com/vol1/sources). ## Related terms - [Benchmark](https://dryburgh.com/vol1/glossary/benchmark) - [Spread](https://dryburgh.com/vol1/glossary/spread) - [10-K, 10-Q](https://dryburgh.com/vol1/glossary/10-k-10-q) - [Backstop](https://dryburgh.com/vol1/glossary/backstop) - [Basis point](https://dryburgh.com/vol1/glossary/basis-point) - [Beignet](https://dryburgh.com/vol1/glossary/beignet) - [Bridge loan](https://dryburgh.com/vol1/glossary/bridge-loan) - [Convertible](https://dryburgh.com/vol1/glossary/convertible) - [Coupon](https://dryburgh.com/vol1/glossary/coupon) - [Covenant](https://dryburgh.com/vol1/glossary/covenant) - [DDTL](https://dryburgh.com/vol1/glossary/ddtl) - [Debt-service coverage](https://dryburgh.com/vol1/glossary/debt-service-coverage) From the glossary of The AI Compute Race. - [Campuses](https://dryburgh.com/vol1/ledger) - [Tests](https://dryburgh.com/vol1/tests) - [Scorecard](https://dryburgh.com/vol1/scorecard) - [Data](https://dryburgh.com/vol1/data/releases) - [Chapter by chapter](https://dryburgh.com/vol1/companion) - [The record at a glance](https://dryburgh.com/vol1/observatory) - [The machine](https://dryburgh.com/vol1/machine) - [One campus, four futures](https://dryburgh.com/vol1/hyperion) - [Glossary](https://dryburgh.com/vol1/glossary) - [People](https://dryburgh.com/vol1/people) - [Sources](https://dryburgh.com/vol1/sources) - [Notes](https://dryburgh.com/vol1/notes) - [Where the book was wrong](https://dryburgh.com/vol1/corrections) - [Where its sources were wrong](https://dryburgh.com/corrections?book=vol1) - [The Paper](https://dryburgh.com/vol1/paper) - [Consent](https://dryburgh.com/vol1/consent) - [Who builds and pays](https://dryburgh.com/vol1/parties) *The AI Compute Race: Five Races, One Machine* is a book by Lee S. Dryburgh, the first volume of THE COMPUTE ECONOMY, published by Dryburgh, an imprint of Contestra OÜ, Tallinn, Estonia; its record closes on 8 November 2026. [About the book](https://dryburgh.com/vol1)[Tell me when it is out](https://dryburgh.com/vol1#notify)