SpaceX Seeks First Investment-Grade Bond Sale Since Nasdaq Listing
Summary
- SpaceX is seeking to issue at least $20 billion of investment-grade corporate bonds in its first such sale since listing on the Nasdaq.
- SpaceX’s bond ratings were assessed at BBB+ by Moody’s and Fitch and BBB by S&P Global, while the 10-year bond yield is expected to price 1.35 to 1.5 percentage points above US Treasury yields.
- The bond sale will be used to repay a $20 billion bridge loan maturing next year, and while SpaceX posted first-quarter revenue of $4.69 billion and a net loss of $4.28 billion, Wall Street expects its cloud contracts worth $30 billion with Google and $45 billion with Anthropic to support earnings.
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SpaceX, Elon Musk’s rocket and satellite company, is seeking to sell at least $20 billion of investment-grade corporate bonds in its first such offering since its Nasdaq listing, Bloomberg reported on June 18.
Citing people familiar with the matter, Bloomberg said SpaceX plans to discuss the transaction with investors in a video conference next week. Moody’s and Fitch assigned the company’s bonds a BBB+ rating, while S&P Global Ratings graded them BBB.
The 10-year bonds are expected to yield 1.35 to 1.5 percentage points above US Treasury notes, the people said.
Proceeds from the sale will be used to repay a $20 billion bridge loan due next year. Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Morgan Stanley provided the bridge financing and are also expected to underwrite the bond deal, Bloomberg reported.
SpaceX posted first-quarter revenue of $4.69 billion and a net loss of $4.28 billion. On Wall Street, the company’s $30 billion cloud contract with Google and $45 billion cloud contract with Anthropic are seen contributing to earnings.
Lee Mi-ah, Hankyung.com reporter mia@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
