SpaceX is preparing to raise approximately $20 billion through a bond sale as soon as next week, according to sources cited by the Financial Times. The funds are intended to repay a bridge loan of the same size taken out after the company's merger with xAI. The move marks a significant shift into debt markets for the rocket and AI group.
The bond sale follows SpaceX's stock market debut, which raised $86 billion and underscored its valuation as one of the most valuable private companies. The decision to issue debt rather than equity may signal a desire to avoid further dilution for existing shareholders while addressing near-term liquidity needs.
Proceeds from the offering will directly retire a bridge loan that was reportedly structured to finance the xAI merger. The $20 billion figure represents a substantial portion of SpaceX's post-IPO balance sheet activity. Sources indicate the bond sale could launch as early as next week, pending market conditions.
The deal could test investor appetite for high-profile private company debt tied to volatile sectors like aerospace and artificial intelligence. Some analysts warn that the combined entity's heavy capital requirements may strain future cash flows, though SpaceX's strong revenue from launch services and Starlink provide a buffer.
A competing view suggests the bond sale could succeed given strong demand for yield from institutional investors. However, the short timeline and large size may limit participation to a narrow set of buyers.