SpaceX pulls off one of the biggest AI debt deals yet

By William Gavin and Joy Wiltermuth

The $25 billion offering is set to repay existing SpaceX debt

SpaceX went public less than two weeks ago. Now it just sold one of the biggest AI bond deals yet.

SpaceX late Tuesday confirmed pricing for its first bond offering as a public company after upsizing the deal in the wake of massive demand.

The bond issuance reached $25 billion, according to a new filing, whereas Bloomberg News reported that SpaceX was previously targeting $20 billion.

SpaceX issued five tranches of senior notes, including $7 billion of 5.35% notes due in 2031, $6 billion of 5.65% notes due in 2033 and $6 billion of 5.875% notes due in 2036. It also issued $2.5 billion of 6.6% notes due in 2046 and $3.5 billion of 6.65% notes due in 2056.

SpaceX (SPCX) attracted up to $89 billion in demand for the bond sale, which was one of top five-largest peak order books of 2026 in the U.S. investment-grade market, according to Informa Global Markets. It's also among the biggest AI bond offerings by size.

Nvidia (NVDA) last week also completed a $25 billion, multi-tranche bond offering. Alphabet (GOOG) (GOOGL) sold $20 billion in bonds in the U.S. alone, and Oracle (ORCL) raised $25 billion in February.

The offering is expected to settle on Friday, SpaceX, said, noting that it is subject to closing conditions.

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Proceeds are primarily going toward SpaceX's bridge loan valued at $20 billion, which it took out to pay off debt accrued by xAI. The bridge loan is set to mature in September 2027, according to the company.

SpaceX this month was given investment-grade ratings from S&P Global Ratings, Moody's Ratings and Fitch Ratings. S&P Global Ratings noted that it could downgrade its rating if SpaceX fails to meet its ambitious growth plans but continues to invest heavily, generating negative free cash flow.

The company has a series of ambitious plans, ranging from data centers in space to a chipmaking project, which will likely be costly. SpaceX raised $85.7 billion in its initial public offering this month, bringing its cash and cash equivalents to $100.8 billion.

KeyBanc analysts recently forecast that SpaceX could generate negative free cash flow through at least 2028. Its burn would peak in 2027, at an estimated $33.5 billion negative free cash flow, according to KeyBanc, which rates SpaceX at sector weight.

"XAI is likely to burn free cash flow for the foreseeable future, something that has weighed on multiples at hyperscalers," Keybanc analysts led by Michael Leshock said in a Monday report.

The initial announcement of SpaceX's bond sale had startled some investors, some of whom sold their shares. SpaceX lost $400 billion in market value on Monday after the company confirmed prior reports that it would offer senior unsecured notes.

SpaceX shares rose slightly in after hours trading on Tuesday. Earlier, the stock had been volatile, briefly falling below its debut price on the Nasdaq before recovering to close up 1%.

-William Gavin -Joy Wiltermuth

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06-23-26 1914ET