Following its record-breaking initial public offering, SpaceX is preparing to enter the bond market with an offering of at least $20 billion. This strategic move aims to refinance a substantial bridge loan of $20 billion, which was primarily utilized to finance the acquisition of xAI in February. The bond offering will mark SpaceX's inaugural issuance of investment-grade US dollar bonds, with proceeds also earmarked for general corporate purposes and further investment in its burgeoning AI and data center initiatives.
Bankers from major financial institutions, including Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co., Goldman Sachs Group Inc., and Morgan Stanley, are facilitating the bond sale. These same banks had previously provided the $20 billion bridge financing, which constitutes the majority of SpaceX’s $29.1 billion in long-term debt as of March 31. The bridge loan is set to mature in September 2027, making this refinancing a critical financial maneuver for the company.
Despite receiving investment-grade ratings from Moody's (Baa1), Fitch (BBB+), and S&P (BBB) on June 18, SpaceX's stock (SPCX) experienced a nearly 4% decline the same day. This divergence in market reaction highlights a difference in perception between bond and equity investors. While bond investors see the rating as a path to cheaper refinancing, equity investors reacted to disclosures such as S&P's forecast of negative free cash flow through 2029 and Moody's concerns about governance due to high reliance on a single individual. The bond offering is crucial regardless of stock performance, as the company is obligated to repay or refinance the $20 billion bridge loan by its September 2027 deadline.
SpaceX's IPO, which valued the company in the trillions of dollars and involved raising tens of billions from investors, positioned it as one of the world's most valuable public companies and made Elon Musk the world's first trillionaire. The company had initially set its IPO price at $135 per share, raising $75 billion and briefly pushing its valuation above $2 trillion. However, shares have since dropped, with the market questioning the sustainability of its post-IPO price given significant spending on AI infrastructure, including a $60 billion acquisition of the coding startup Cursor. As of June 19, 2026, SpaceX reported approximately $100.8 billion in cash and cash equivalents.
