Following a record initial public offering, SpaceX, led by Elon Musk, is preparing to issue its first investment-grade U.S. dollar bonds. Bankers are setting up calls with investors, potentially starting as early as next week, to discuss the bond offering, which is expected to be at least $20 billion. The company aims to use the net proceeds to fully repay outstanding bridge loan borrowings, cover associated fees and expenses, and fund general corporate purposes, including substantial investments in AI infrastructure.
The primary use of these funds is to refinance a $20 billion bridge loan that is set to mature in September 2027. This bridge loan constituted the majority of SpaceX's approximately $29.1 billion in long-term debt as of March 31. The same five banks that arranged the initial bridge loan—Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, and Morgan Stanley—are anticipated to lead this bond sale.
This bond offering comes shortly after SpaceX's record $75 billion IPO, during which its shares were valued at $135 each, briefly pushing its valuation above $2 trillion. The company also recently reported approximately $100.8 billion in cash and cash equivalents as of June 19, 2026. Credit rating agencies Moody’s, Fitch, and S&P have assigned investment-grade ratings of Baa1, BBB+, and BBB, respectively, to SpaceX, acknowledging its unique financial profile which combines aerospace, satellite, and AI ventures with significant capital expenditures and holdings in Bitcoin valued at about $1.29 billion.
While the bond is primarily for refinancing existing debt, its proceeds will also contribute to SpaceX's substantial spending on AI infrastructure, including its $60 billion acquisition of coding startup Cursor and the financing of the xAI acquisition. The market is closely watching how SpaceX's post-IPO share performance, which saw an 8% drop over two sessions, will be impacted by its aggressive investment strategy. The success of its AI investments in generating revenue before the next bridge loan matures will be key to sustaining investor confidence.
