SpaceX launches $25 billion notes offering, source says
SpaceX has launched its largest-ever notes offering, with the deal sized at $25 billion, a source said. Proceeds will fund expansion of the Starship production line and the refresh of the Starlink satellite fleet, with order books reportedly running well above target.
A source close to the deal said SpaceX brought a $25 billion bond offering to market on Tuesday. A syndicate led by JPMorgan, Goldman Sachs and Morgan Stanley is expected to close the book with global institutional investors by Wednesday evening.
Around $14 billion of the proceeds will fund the expansion of Starship facilities at Boca Chica and Cape Canaveral. The remainder will finance the refresh of Starlink V3 satellites and the company's new engine production line in Hawthorne. SpaceX moved into a net debt position after its 4 May IPO; this deal will lift gross debt to roughly $38 billion.
The issuance drew strong institutional demand despite recent pressure on the share price. SpaceX stock has lost 18% over the past two weeks, but short interest stands at only 5-7% of the free float, according to S3 Partners. Fitch assigned a provisional BBB+ rating to the notes.
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