Details
- SpaceX announced its inaugural senior unsecured notes offering less than two weeks after its June 12 Nasdaq listing.
- The company raised about $85.7 billion from its IPO, one of the largest public offerings on record.
- SpaceX said it held about $100.8 billion in cash, underscoring the scale of its post-IPO balance sheet.
- The company did not disclose the size or pricing terms of the proposed bond sale.
- Proceeds will be used to repay borrowings under a bridge-loan facility, cover related expenses and support general corporate purposes.
- Analysts said issuing debt allows SpaceX to raise capital without selling more shares or diluting existing investors.
- Elon Musk retains 82% of SpaceX’s voting power through its dual-class share structure.
- SpaceX shares fell about 8% to 9% after the announcement, extending losses for a third consecutive trading session.
- The company has increased spending on AI infrastructure and its next-generation Starship rocket, putting pressure on profitability despite strong growth at Starlink.
- Revenue rose 33% to $18.67 billion last year, although SpaceX reported a net loss after heavy spending and the integration of xAI.
- Credit-rating agencies assigned SpaceX investment-grade ratings, with Moody’s rating the debt Baa1 and Fitch assigning BBB+.
- CNBC reported that SpaceX also signed a computing-power agreement with Reflection AI worth up to $6.3 billion through 2029.
What Else
Investors are watching whether SpaceX continues using debt to fund AI and rocket expansion while avoiding further share issuance. The bigger test is whether Starlink growth and new computing-power deals can offset heavy spending and improve profitability.
