SpaceX Raises $25 Billion in Multi-Tranche Debt Deal

Key Highlights

• SpaceX has completed a $25 Billion bond offering.
• The deal consists of five tranches with maturities between 2031 and 2056.
• Stock for SpaceX fell 0.5% in the extended trading session.

SpaceX Exploration Technologies Corp. completed five separate tranches of senior unsecured notes totaling to $25 billion in bonds, the company revealed in a filing with the U.S. Securities and Exchange Commission (SEC). The offers began on 22 June, and included bonds maturing through to 2031-2056.

Bond Offering Details

The company issued $7 billion of 5.35% notes measuring in 2031, $6 billion of 5.65% notes due in 2033, $6 billion of 5.875% notes due in 2036, $2.5 billion of 6.60% notes in 2046, and an additional of $3.5 billion of 6.65% notes due 2056. 

Interest on all tranches will be payable semi-annually, two times a year on January 15 and July 15 starting in January 2027. The Bank of New York Mellon Trust Company serves as trustees under the indenture agreement. 

Private Placement

The bonds were offered in a private placement to eligible institutional buyers under rule 1442 and to non-US institutional investors outside the United States pursuant to to Regulation S. 

BofA Securities, Goldman Sachs, Citigroup Global Markets, J.P Morgan Securities, and Morgan Stanley led the initial syndicate for initial purchases of bonds. 

Along with the offering, SpaceX entered into a registration rights agreement to exchange the privately placed notes for publicly registered notes within 540 days from the closing date.

Following the announcement, SpaceX’s shares dipped 0.5% in after-hours trading. The stock has fallen 17% this week, following a strong first-week rally as a listed company.

Source: Yahoo Finance 

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