SpaceX (SPCX) has raised $25 billion U.S. from a corporate bond sale less than two weeks after going public in a record-setting initial public offering (IPO).
SpaceX issued a senior unsecured corporate bond that netted it $25 billion U.S. The commercial space company led by Elon Musk received $90 billion U.S. worth of orders.
The bond sale has pressured SpaceX’s stock as investors and analysts question why the company is tapping the debt markets shortly after its IPO raised $85 billion U.S.
SpaceX has disclosed that it has just over $100 billion U.S. of cash on hand currently.
However, the company has said that it needs plenty of capital as it funds its Starship rockets and grows its Starlink satellite internet business, as well as artificial intelligence (A.I.).
SpaceX also recently announced that it’s acquiring A.I.-coding startup Cursor for $60 billion U.S.
In the debt sale, SpaceX priced its bonds in five tranches, with notes due between 2031 and 2056. Rates on the bonds vary from 5.35% to 6.65%.
The company said in a news release that it intends to use the proceeds from the bond sale to repay outstanding debt under its bridge loan program and for general corporate purposes.
SPCX stock has declined 3% since its June 12 IPO and its shares currently trade at $156.11 U.S.
