Elon Musk’s SpaceX said on Tuesday it has launched a five-tranche notes offering to raise at least $25 billion, as the newly public company seeks funding for its capital-intensive AI expansion.
SpaceX’s AI ambitions carry a hefty price tag, requiring tens of billions of dollars in investment in data centres, computing hardware and power infrastructure.
The senior unsecured notes will be issued across 5-year, 7-year, 10-year, 20-year, 30-year periods.
Proceeds will be used to repay borrowings under its bridge loan facility as well as for general corporate purposes.
How history came to have its first trillionnaire in Elon Musk The offering, which is SpaceX’s first investment-grade dollar bond issuance, has drawn nearly $85 billion in orders, a source familiar with the matter told Reuters.
Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Morgan Stanley are managing the sale, according to a document seen by Reuters.
Credit rating agencies assigned the company investment-grade ratings last week, signaling confidence in SpaceX’s financial stability as it moves forward with its costly AI plans.
The rockets-to-AI firm’s shares rebounded on Tuesday, following a recent selloff tied to a broader tech pullback, after a blockbuster debut on June 12.
