TechFlow News, June 19: SpaceX plans its inaugural bond issuance. According to sources familiar with the matter, SpaceX (SPCX.O)’s syndicate of investment banks is expected to hold investor conference calls as early as next week to discuss launching a bond offering following the company’s record-setting IPO. Sources indicated that the bond issuance is expected to be at least $20 billion, with investor outreach set to begin as early as Monday; however, the specific structure and timing remain subject to change.
SpaceX plans to issue investment-grade U.S. dollar-denominated bonds. Proceeds from the bond sale will be used to refinance a $20 billion bridge loan maturing in September 2027. SpaceX’s IPO registration filing with the U.S. Securities and Exchange Commission (SEC) shows that, as of March 31, this bridge loan accounted for the majority of the company’s $29.1 billion in long-term debt. Sources said Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, and Morgan Stanley jointly provided the bridge loan and will serve as joint bookrunners for the upcoming bond offering. (Jinshi)
