SpaceX said to prepare at least $20 billion bond sale

The reported debt deal could begin marketing as early as Monday and would refinance a $20 billion bridge loan after the company’s record IPO.

Summary

SpaceX’s banking syndicate could begin investor calls as early as Monday for a potential investment-grade U.S. dollar bond sale of at least $20 billion, according to people familiar with the matter. The proceeds would be used to refinance a $20 billion bridge loan due in September 2027, which accounted for the largest share of SpaceX’s $29.1 billion in long-term debt as of March 31. If completed, the transaction would rank among the larger corporate debt offerings and would be closely watched for what it suggests about investor appetite for credit tied to a major aerospace company following its record IPO.

Terms & Concepts
  • investment-grade: A credit rating category indicating relatively low default risk compared with lower-rated debt.
  • bridge loan: Shorter-term financing used until a company replaces it with longer-term funding.
  • banking syndicate: A group of banks that jointly arranges and markets a financing deal.