SpaceX Bond Offering Sparks 16% Stock Drop, Shares Close at $154.60
SPCX•SpaceX shares plunged 16% on June 22 to close at $154.60, cutting the premium to 14% above its $135 IPO price and marking a three-day slide since its June 12 debut. It followed confirmation of a senior unsecured bond offering of at least $20 billion to repay an xAI bridge loan.
1. Stock Performance Decline
SpaceX shares fell 16% on June 22, closing at $154.60 after a three-day slide since its June 12 Nasdaq debut. The session marked the steepest drop yet and reduced the stock’s premium to just 14% over its $135 IPO price.
2. Bond Offering Details
The company filed to offer senior unsecured notes to qualified institutional buyers, targeting at least $20 billion in proceeds. Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Morgan Stanley are managing the bond sale, with pricing yet to be disclosed.
3. Use of Proceeds and Ratings
Proceeds from the bond offering are earmarked to repay the bridge loan used for the February acquisition of xAI. Both Fitch and Moody’s have assigned investment-grade ratings to the proposed notes, citing strong Starlink revenue and launch market leadership.
4. Future Risks and Catalysts
Analysts project negative free cash flow through 2029 due to ongoing Starship and AI investments, while a $60 billion Cursor deal adds dilution. Insiders could sell up to 44% of shares once lockups expire, and the company’s first public earnings report is due August 6.
