SpaceX announced its first-ever investment-grade bond offering on June 23, targeting $25 billion through a five-part sale. [1, 2, 3, 4] Investor interest was strong, with demand reaching about $89 billion despite the company's large projected cash burn. [3, 4] The bond sale is expected to complete by June 26. [5]
The bonds will mature between 5 and 30 years, with coupon rates ranging from 5.35% for 2031 notes to 6.65% for 2056 maturities. [6, 7, 5] Bonds maturing in 2036 priced approximately 140 basis points above Treasuries, around 40 basis points wider than typical BBB rated debt. [2, 5]
Credit rating agencies assigned SpaceX an investment-grade rating, with Moody’s at Baa1 and S&P at BBB, one notch lower. [2, 8] Despite this, investors remain cautious due to uncertainty about profitability and ongoing negative free cash flow expected through at least 2030, with cash burn accelerating in 2027-2028. [7, 8]
The bond issuance will refinance an earlier 2026 bridge loan and support general corporate uses, including major investments in AI projects. [9, 7, 4, 5] SpaceX recently raised $75-$86 billion in its IPO, leaving the company with over $100 billion cash on hand. [6, 7, 4]
SpaceX has been expanding its Starship rockets, Starlink satellite network, and AI ventures, including a $60 billion all-stock acquisition of AI coding startup Cursor. [8, 4] Sal Naro, CIO of Coherence Credit Strategies, said the bond sale "appears that the agencies are giving them a lot of leeway and a lot of positivity for events that are going to happen in the near- or middle-term." [8] Ross Pamphilon, CIO at Impax Asset Management, commented, "Obviously it’s something to get your head around and it takes a bit of a leap of faith." [7]
Banks including Goldman Sachs, Bank of America, Citigroup, JPMorgan Chase, and Morgan Stanley arranged investor calls ahead of the bond announcement on June 22. [6, 7, 4] The deal is one of the largest debt offerings in the AI investment era. [7, 4]
The bond sale is expected to close by June 26, 2026, marking a milestone in SpaceX’s capital strategy.
