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First investment-grade bonds
SpaceX is preparing to meet investors as early as next week to discuss a bond offering of at least $20 billion, two sources familiar with the matter said on Thursday, as Elon Musk’s newly public company seeks funding for an AI expansion.
“SpaceXis preparing to enter the bond market for the first time as apublicly traded company, with bankers set to meet investors as early as next week to discuss a debt offering of at least US$20 billion, according to two sources familiar with the matter”
The offering would mark the first time the rockets-to-AI company has issued investment-grade dollar bonds, and bankers are expected to run the deal with Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Morgan Stanley.
Proceeds from the debt offering would refinance a $20 billion bridge loan that SpaceX took out earlier this year after acquiring Musk’s AI startup xAI in February.
The company’s valuation surged past $2 trillion following its blockbuster Nasdaq debut last week, and its shares soared in their first two days of trading before giving up some gains as investors assessed whether the valuation can be justified by the costly AI push.
Refinancing a 2027 loan
Multiple reports tied the planned sale to refinancing a $20 billion bridge loan, with TradingView saying proceeds would refinance a $20-billion bridge loan due in September 2027.
The same report said the bond offering would mark SpaceX's debut in the investment-grade bond market, with investor outreach expected to begin as early as next week.
Moomoo added that the bond issuance would directly repay a $20 billion bridge loan maturing in September 2027 and said SpaceX had obtained investment-grade ratings from three major credit rating agencies.
Moomoo also said the company’s IPO filing showed that as of March 31 its total long-term debt stood at $29.1 billion, with the $20 billion bridge loan constituting the majority.
Market reaction and stakes
As the bond talks emerged, New Orleans CityBusiness | Other said SpaceX shares were down 6% in afternoon trading and that the company did not immediately respond to a Reuters request for comment.
“KEY TAKEAWAYS: SpaceX’s bankers are preparing to meet investors as early as next week to discuss a bond offering of at least $20 billion, two sources familiar with the matter said on Thursday, as Elon Musk‘s newly public company seeks funding for an ambitious and capital-intensive AI expansion”
TradingView said the stock extended its decline for a second straight session on Thursday, falling as much as 10% during intraday trading after dropping nearly 5% on Wednesday, before recovering some losses to be down 3.5% at the time of writing.
The stakes described in the reports centered on funding for AI infrastructure, with New Orleans CityBusiness | Other saying the AI ambitions require tens of billions of dollars in investment for data centers, computing hardware and power infrastructure.
TradingView said in its IPO filing SpaceX told investors capital expenditures are expected to rise substantially and that it plans to rely on a combination of debt and equity financing to support future investments.
