SpaceX is moving to finalize an approximately $40 billion debt offering at markedly higher interest rates than when it last tapped bond markets. People familiar with the deal say the riskiest, lowest-rated tranche is expected to carry an interest rate of about 8.3%. A safer portion of the debt, which is backed in part by some of SpaceX’s chips, is likely to price around 7.75% next week.
Those levels are more than one percentage point higher than yields on SpaceX’s existing bonds, reflecting increased risk premia as investors pull back amid recent volatility in AI-related markets. The transaction is being led by Apollo and Goldman Sachs; both firms declined to comment to the reporting outlet. Pricing could still change before the debt is finalized, which sources expect to happen sometime next week.
Why this matters
The higher yields signal growing investor caution about corporate borrowing costs in the current environment, where AI-sector stress has affected credit markets. A recent selloff of CoreWeave debt has exacerbated fears tied to AI exposures, and credit-default insurance on SpaceX has widened, suggesting some concern among market participants about the company’s debt plans.
Additional relevant details
- Existing SpaceX bonds have weakened in recent days despite strong earnings, as the company’s large planned expenditures and overall leverage have weighed on sentiment.
- The deal is reportedly led by Apollo and Goldman Sachs; both firms declined to comment.
- The report notes that President Donald Trump purchased $5 million of SpaceX bonds in August.
- The company is also described as currently considering a merger with Tesla.
Market participants will be watching the final pricing and investor demand as the offering is completed in the coming week.
