SpaceX priced $25 billion of investment-grade notes on June 23 in one of the largest debut corporate bond sales on record, with orders approaching $90 billion. The company upsized the offering by $5 billion above its original $20 billion target to meet heavy demand. SpaceX said it intends to use the proceeds to repay borrowings under its bridge loan facility in full, with any remainder going toward Starlink satellite internet expansion, Starship rocket development, and an artificial-intelligence buildout. The bond sale followed a record IPO on June 12, one of the most closely watched market events of the year.
SpaceX Prices Five-Tranche Structure with Maturities to 2056
The deal spanned five tranches with maturities stretching from 2031 to 2056. The structure included $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. Orders approached $90 billion, nearly quadrupling the company's original $20 billion target and allowing it to upsize the offering by $5 billion. SpaceX held roughly $100.8 billion in cash and cash equivalents as of June 19, a position that helped it secure investment-grade terms on its first trip to the bond market.
![Tweet discussing SpaceX's $25 billion debut bond sale.]()
Image source: X
SpaceX to Repay Bridge Loan and Fund Starlink, Starship, AI Projects
SpaceX said it intends to use the proceeds first to repay borrowings under its bridge loan facility in full, with any remainder going toward general corporate purposes. The repayment cleans up financing that had bridged the company's capital needs ahead of its public debut. The fundraising comes as SpaceX presses ahead with an array of capital-intensive projects. The company is expanding its Starlink satellite internet business, developing its Starship rocket program, and pursuing a broader artificial-intelligence buildout, each of which demands sustained investment.
Bond Sale Follows Record IPO on June 12
The bond sale followed a record IPO on June 12, one of the most closely watched market events of the year. The listing rippled well beyond equities, with Bitcoin.com News reporting that prediction-market trading hit a record $10.8 billion week as the SpaceX IPO, the World Cup, and other events drove a surge in speculative volume. Prediction platforms saw simultaneous demand across finance, geopolitics, and sports, with SpaceX listed among the key catalysts. With its bridge loan set to be repaid and fresh long-term funding secured, SpaceX has locked in capital to push its many ambitions through the rest of the decade.
FAQ
What did SpaceX do on June 23?
SpaceX priced $25 billion of investment-grade notes on June 23 in one of the largest debut corporate bond sales on record, with orders approaching $90 billion.
Why did SpaceX raise $25 billion in debt?
SpaceX said it intends to use the proceeds to repay borrowings under its bridge loan facility in full, with any remainder going toward Starlink satellite internet expansion, Starship rocket development, and an artificial-intelligence buildout.
When did SpaceX complete its IPO?
SpaceX completed a record IPO on June 12, one of the most closely watched market events of the year.
