SpaceX launches its first investment-grade bond issuance

Golden Finance reports, June 22nd, that SpaceX has issued its first investment-grade bonds, which is expected to be the beginning of a large-scale financing wave to support its artificial intelligence vision following its record-breaking $75 billion IPO. SpaceX's filing states that it has initiated the issuance of its first senior unsecured notes, "subject to market conditions and other factors." The document further explains that these notes will be unsecured debt of SpaceX, with equal rights in repayment order to all existing and future non-subordinated debt, liabilities, and other obligations. According to media reports last week, SpaceX is seeking to raise at least $20 billion through this issuance. The funds will be used to repay a roughly equivalent amount of bridge loans, which constitute the majority of SpaceX's $29.1 billion long-term debt. Last week, SpaceX received ratings from the three major bond rating agencies, paving the way for lower-cost financing. Moody's and Fitch assigned SpaceX debt ratings of Baa1 and BBB+, respectively, both three notches above junk status. S&P gave a BBB rating.
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