SpaceX blasts into the bond market with rumored $20B debt offering
Investing.com -- Fresh off its highly anticipated IPO, Space Exploration Technologies Corp. (Nasdaq: SPCX) is making its next massive financial leap. The aerospace giant has officially announced its inaugural offering of senior unsecured notes, a strategic move poised to dramatically optimize its capital structure.
Armed with newly minted BBB-tier investment-grade ratings from all three major credit agencies as of Thursday, SpaceX has successfully paved the way for significantly cheaper borrowing costs.
Here is the breakdown of the offering:
The Big Number: While the final terms are subject to market conditions, Bloomberg reports that rumors of the bond sale point to a staggering $20 billion valuation.
Where the Money is Going: This capital won’t just sit idle. SpaceX plans to completely wipe out its outstanding bridge loan facility, cover all related offering fees, and funnel the remainder into a war chest for general corporate purposes.
The Fine Print: The debt is being offered exclusively to qualified institutional buyers. As senior unsecured obligations, these notes will rank equally in right of payment alongside all of SpaceX’s existing and future unsubordinated debt and liabilities.