TL;DRSpaceX drew $89 billion in demand for its debut bond sale, seeking $20 to $25 billion across five tranches to refinance bridge loan debt.
SpaceX has drawn roughly $89 billion in investor demand for its debut US bond sale, Bloomberg reported on Tuesday, setting the stage for one of the largest investment-grade offerings this year. The company is seeking to raise between $20 billion and $25 billion from a five-tranche deal expected to price on Tuesday. At the lower end of that range, demand would exceed the offering by more than four times.
Price talk on the longest-dated tranche, which matures in 2056, tightened by about a quarter of a percentage point to 1.75 percentage points above Treasuries. The five banks managing the sale, Goldman Sachs, Morgan Stanley, JPMorgan Chase, Bank of America, and Citigroup, either declined to comment or did not respond to requests for comment.
Proceeds from the sale will refinance a $20 billion bridge loan that SpaceX used earlier this year to retire roughly $17 and a half billion of high-interest junk debt accumulated by X and xAI. That bridge loan, arranged by the same five banks, carried an effective rate of about four and a half percent, roughly half the cost of the junk bonds it replaced. The bond sale converts that temporary financing into permanent capital market debt.
