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HTX News

06/24 02:00

SpaceX Issues $25 Billion Bond to Restructure Debt and Lower Interest Costs

On June 24, SpaceX issued $25 billion in investment-grade bonds, marking the company's final step in replacing high-cost debt. This high-cost debt was used to finance Elon Musk's acquisition of X (formerly Twitter) in 2022, as well as loans and bonds issued by the artificial intelligence lab xAI last year to cover its rapid cash burn. Had these entities not been incorporated into SpaceX, they would have incurred approximately $1.8 billion in interest expenses on a total of $17.5 billion in debt this year. Now, the merged SpaceX will bear an annual interest cost of about $1.5 billion with the initial bond issuance size of $25 billion.

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