SpaceX Prepares to Sell $20 Billion in Bonds Following Record-Breaking IPO — Bloomberg

Elon Musk's space company, SpaceX, plans to issue investment-grade bonds denominated in U.S. dollars for the first time in its history, according to Bloomberg. According to its sources, the lead underwriters for the deal are preparing to begin negotiations with investors as early as next week.

The bond offering is expected to total at least $20 billion, according to the agency. However, the plans and timing of the deal could still change, sources told Bloomberg.

The proceeds from the offering will be used to refinance a $20 billion bridge loan maturing in September 2027. This loan accounts for the bulk of SpaceX’s long-term debt, which stood at $29.1 billion as of March 31, according to the company’s IPO filing.

According to sources, the deal will be led by Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, and Morgan Stanley—the same banks that previously provided the company with bridge financing. Representatives from Citigroup, Goldman Sachs, JPMorgan, and Morgan Stanley declined to comment, while Bank of America and SpaceX did not respond to the request.

SpaceX held a record-breaking IPO last week, propelling it into the ranks of the world’s most valuable public companies. Shortly before its stock market debut, the company informed investors that it had received investment-grade ratings from the three largest rating agencies, according to Bloomberg sources. This will allow it to raise cheaper financing in the public debt market. Analysts at CreditSights subsequently stated that SpaceX might try to raise capital in the market “shortly after the IPO.”

This article was AI-translated and verified by a human editor