SpaceX Raises $25B in Bonds on $89B Orders to Fund Starship and AI
SPCX•SpaceX priced a $25 billion senior unsecured bond sale across five tranches, boosting the deal from a $20 billion target after $89 billion in orders. It will use proceeds to repay its $20 billion bridge loan, cover fees, and fund Starship, Starlink and AI projects.
1. Bond Pricing and Demand
SpaceX increased its bond offering to $25 billion from an initial $20 billion target after receiving $89 billion in orders. The notes were split into five tranches maturing in 2031, 2033, 2036, 2046 and 2056 with coupons ranging from 5.35% to 6.65%.
2. Use of Proceeds
Net proceeds will first retire the $20 billion bridge loan drawn in March at an effective rate of 4.58%, cover related fees and expenses, and the remainder will support general corporate purposes including Starship rocket development, Starlink network expansion and AI initiatives.
3. Debt Ranking and Spread
The unsecured notes will rank equally with all existing and future unsubordinated debt of SpaceX. The 2036 tranche priced at 1.4 percentage points above Treasuries, roughly 0.4 points wider than average BBB-rated bonds, reflecting execution risk and expected cash burn.
4. Cash Position and Strategic Funding
SpaceX holds just over $100 billion in cash and is pursuing a $60 billion stock deal to acquire AI-coding startup Cursor. Starlink remains its sole profitable segment, and the company has accumulated $41.3 billion in cumulative losses since 2002.
