SpaceX sells $25B debut bonds after $90B orders
SpaceX sold $25 billion of investment-grade bonds on June 23, drawing nearly $90 billion in investor orders. Proceeds will repay a bridge loan and fund Starlink, Starship and AI work.
SpaceX priced $25 billion of investment-grade notes on June 23, marking its first corporate bond sale. Investor orders approached $90 billion and the offering was increased to $25 billion from an initial $20 billion target.
The sale consisted of five tranches: $7 billion of 5.350% notes due 2031; $6 billion of 5.650% notes due 2033; $6 billion of 5.875% notes due 2036; $2.5 billion of 6.600% notes due 2046; and $3.5 billion of 6.650% notes due 2056.
SpaceX said the proceeds will first repay borrowings under a bridge loan facility related to its recent public listing. Any remaining funds will be available for general corporate purposes, including the Starlink satellite network, the Starship rocket program and an artificial-intelligence buildout.
The company reported about $100.8 billion in cash and cash equivalents as of June 19. That liquidity position helped support investment-grade pricing for the debut bond issue.
The bond sale came days after SpaceX’s initial public offering on June 12. The long-dated notes provide multi-year financing for the company’s capital-intensive projects.
Investors will monitor how quickly SpaceX deploys the bond proceeds and whether the company returns to the debt markets for additional funding.
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