SpaceX Plans First Investment-Grade Bond Sale Since Nasdaq Listing, Targeting at Least $20 Billion

SpaceX, Elon Musk’s space company, is preparing to sell at least $20 billion of investment-grade corporate bonds, Bloomberg News reported on June 18. It would be the company’s first such offering since its June 12 Nasdaq listing.

The company plans to discuss the deal with investors in virtual meetings next week, Bloomberg reported, citing people familiar with the matter. Moody’s and Fitch rated the bonds BBB+, while S&P Global Ratings assigned a BBB rating.

People familiar with the matter said the yield on SpaceX’s 10-year bonds would likely be 1.35 to 1.5 percentage points above US Treasuries.

Proceeds from the sale will be used to repay a $20 billion bridge loan due next year. Bloomberg said Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Morgan Stanley provided the bridge financing and are also expected to lead the bond offering.

SpaceX reported first-quarter revenue of $4.69 billion and a net loss of $4.28 billion. Wall Street expects the company’s $30 billion cloud contract with Google and a $45 billion cloud agreement with Anthropic to contribute to revenue.

Lee Mi-a, Hankyung.com reporter, mia@hankyung.com