SpaceX Upsizes Debt to $25B with 5.35%–6.65% Yields After $90B Orders
SPCX•SpaceX priced a $25 billion bond offering across five tranches maturing 2031–2056 with yields from 5.35% to 6.65% after $90 billion in orders. The stock slid below its $150 IPO level to $149, dipping 2% as market capitalization retreated to just above $2 trillion.
1. Bond Offering Details
SpaceX launched a $25 billion senior note offering across five tranches maturing between 2031 and 2056, with interest rates set from 5.35% on the shortest tranche to 6.65% on the longest.
2. Use of Proceeds and Rationale
Proceeds will repay an existing bridge loan, cover transaction fees and fund general corporate purposes, bolstering liquidity ahead of planned growth initiatives and operational needs.
3. Market Demand and Pricing
Originally targeting $20 billion, the company saw roughly $90 billion in orders and therefore upsized the deal; notes were sold exclusively to large institutional and non-US investors.
4. Stock Reaction and Valuation Impact
Following the debt announcement, the stock fell 2% to $149, trading below its $150 IPO price and reducing market capitalization to just over $2 trillion, while CEO wealth dipped under $960 billion.
