TechFlow reports that on June 22, SpaceX issued its first investment-grade bonds—an initiative expected to mark the beginning of a large-scale financing wave aimed at fulfilling the company’s artificial intelligence vision following its record-breaking $75 billion IPO. According to SpaceX’s filing, the company has launched the issuance of its inaugural senior unsecured notes, “subject to market conditions and other factors.” The filing adds that these notes will constitute unsecured debt of SpaceX and rank pari passu in right of payment with all of the company’s existing and future unsubordinated debt, liabilities, and other obligations.
As reported by media outlets last week, SpaceX aims to raise at least $20 billion through this bond issuance. The proceeds will be used to repay a roughly equivalent interim bridge loan, which accounts for the majority of SpaceX’s $29.1 billion in long-term debt. Last week, SpaceX secured credit ratings from all three major bond rating agencies, paving the way for lower-cost financing. Moody’s and Fitch assigned SpaceX debt ratings of Baa1 and BBB+, respectively—both three notches above junk status—while S&P Global Ratings assigned a BBB rating. (Jinshi)
