SpaceX Financial Advisors Gear Up for Possible $20 Billion Bond Sale, According to Sources

Bankers for SpaceX are gearing up to engage with investors as early as next week regarding a bond issue of at least $20 billion, according to two sources who are familiar with the situation. This effort comes as Elon Musk’s newly public venture seeks funding for an ambitious and capital-heavy expansion into AI.

The financial requirements for SpaceX’s AI goals are substantial, necessitating tens of billions in investment for data centers, computing hardware, and energy infrastructure.

This bond offering would be a first for the rockets-and-AI company, marking its initial issuance of investment-grade dollar bonds. The exact amount to be offered has not yet been finalized and could vary, according to the source.
Funds generated from the debt issuance would be used to refinance a $20 billion bridge loan that SpaceX secured earlier this year after acquiring Musk’s AI firm xAI in February.

Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, and Morgan Stanley were responsible for the bridge financing and are anticipated to manage the deal, as noted by one of the sources.

The valuation of the rockets-and-AI company exceeded $2 trillion after its spectacular debut on Nasdaq last week. Shares surged during the initial trading phases before retracting some gains as investors evaluated the sustainability of the company’s high valuation in light of its expensive AI initiatives.

As of the afternoon trading session, SpaceX’s shares were down 6%, and the company did not provide an immediate response to a Reuters inquiry for comments.

Earlier on Thursday, Bloomberg News reported on the bond offering.