Exclusive-SpaceX refinanced debt with stopgap $20 billion loan before IPO filing

By Echo Wang and David ‌French

NEW YORK, April ​23 (Reuters) - ​Elon Musk's SpaceX took out a $20 billion bridge loan last month to refinance much of its existing debt ahead of its blockbuster ‌U.S. initial public offering, according to a regulatory filing.

The borrowing, revealed ⁠for the first time in excerpts of its regulatory filings that were reviewed by Reuters, came ‌from a syndicate of lenders ‌which were not identified. Under the terms of the loan, SpaceX could be forced to use proceeds from its IPO to repay it, if it ​is not repaid with other funding sources within six months of the offering.

SpaceX did not respond to a request for comment.

SpaceX is expected to be ⁠the largest IPO in history when it lists this summer. The rocket and artificial intelligence conglomerate is expected ​to garner a valuation in the range of $1.75 trillion, Reuters previously reported.

The information was contained in an S-1 document, which companies ​preparing to go public file with the U.S. ‌Securities and Exchange Commission to disclose details about their business and finances to potential investors. Reuters reviewed an excerpt of the ⁠SpaceX S-1, which was filed confidentially.

The bridge loan replaced five existing debt facilities, of which two were term loans tied to Musk's X social media platform and three borrowings ⁠by xAI, the billionaire's artificial intelligence business. The new loan helped to reduce SpaceX's total debt ​to $20.07 billion as of March 2, compared with $22.05 billion at the end of 2024, the filing added.

Bridge loans are common financing tools with relatively short lifespans and are often refinanced at ‌a later time with new, longer-term debt. The SpaceX bridge loan runs for 18 months, with the possibility of two ‌three-month extensions.

Companies often choose them around a major event, such as a merger or ⁠large acquisition, especially if that move ‌is expected to be ​beneficial for the company and will ultimately lower its borrowing costs.

(Reporting by Echo Wang and David French in New York; Editing by ‌Edmund Klamann)

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