SpaceX kicks off bond sale as it looks to begin mass borrowing spree
Elon Musk’s SpaceX has begun selling investment grade bonds for the first time in what is anticipated to be a mass borrowing spree in order to fund the company’s ambitious AI plans following its blockbuster Nasdaq listing.
Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase & Co and Morgan Stanley are arranging calls with investors in a bid to provide temporary bridge financing for the satellite company, according to reports in Bloomberg.
A bond offer is expected to follow this, with maturities ranging between five and 30 years, according to a person familiar with the matter.
Musk’s space tech firm is looking to raise at least $20bn (£15.1bn) from the offering, with proceeds to be used to refinance its bridge loan, which is a short-term loan used to cover immediate expenses until a company can secure permanent long-term financing.
SpaceX took out a short-term loan in order to pay off debts associated with Musk’s other company xAI, before it was acquired by SpaceX in February 2026, with the loan amounting for the vast majority of its $29.1bn long-term debt.
The firm received ratings in the BBB tier from three major bond graders last week, Moody’s, Fitch and S&P Global, paving the way for cheaper borrowing, as it cemented SpaceX as ‘investment grade’.
Despite Musk’s $75bn IPO, the company’s chief financial officer, Bret Johnsen, said he expects the IPO to be the last time SpaceX would sell stock.
Instead it would tap into the debt market throughout the IPO process in order to raise finances upon receiving its investment grade standing according to people familiar with the matter.
This is not the first time Musk has dipped into the debt market to buy or grow his businesses, securing billions in bank commitments, but this marks the first time one of his firms was issued investment-grade corporate bonds in the public market.
Analysts at Oppenheimer & Co expect debt to be the primary source of funding for the company supplemented by roughly $40 billion of additional equity, they wrote in a June 18 note.
AI is expected to be a key earnings driver for SpaceX in the coming years, as the company has secured contracts worth roughly $75 billion to provide computing power to Google and Anthropic PBC, with Musk also setting his sights on building data centres in orbit in the coming years.
However, analysts have warned that these plans will require a large amount of capital, and will likely face regulatory scrutiny and other factors outside of the company’s control, which could stop plans from progressing.