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SpaceX plans to issue at least $20 billion in bonds to refinance its bridge loans
Svmuu News: Sources familiar with the matter revealed that SpaceX’s (SPCX.O) team of investment banks is set to hold investor conference calls as early as next week to discuss plans for a bond offering following the company’s record-breaking IPO.The sources said the bond offering is expected to be at least $20 billion, with investor outreach set to begin as early as Monday; however, the specific plans and timeline are still subject to change. SpaceX plans to issue investment-grade U.S. dollar-denominated bonds for the first time, with the proceeds to be used to refinance a $20 billion bridge loan maturing in September 2027.SpaceX’s IPO filing with the U.S. Securities and Exchange Commission (SEC) shows that as of March 31, this bridge loan accounted for the bulk of the company’s $29.1 billion in long-term debt.Sources said that Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, and Morgan Stanley jointly provided this bridge loan and will serve as joint lead underwriters for the bond offering. (Jin Shi)
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