SpaceX has begun preliminary discussions with investors on a potential bond sale of up to $20 billion, aiming to refinance a bridge loan due in September 2027. The news sent the company's publicly traded shares down more than 9% in a single session, cutting Elon Musk's net worth by approximately $59 billion.
Bond Size and Use of Proceeds
According to Bloomberg, citing people familiar with the matter, SpaceX and its banking partners are preparing investor talks for a debt offering that could become one of the largest corporate bond deals in recent years. Proceeds would primarily refinance a bridge loan maturing in September 2027 — a significant chunk of SpaceX's long-term debt, which stood at roughly $29.1 billion as of end of March. The final size, structure, and timing remain subject to change based on market conditions and investor demand. Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, and Morgan Stanley are expected to lead the process, the same institutions that participated in the earlier bridge financing.
Stock Drop and Wealth Impact
Following reports of the refinancing plan, SPCX shares fell more than 9% from the prior close of $191.82 to an intraday low of $172.11 on June 18, before partially recovering to around $185. Earlier this month, shares had surged to an intraday high of roughly $225.84, pushing SpaceX's valuation close to $3 trillion and Musk's net worth to nearly $1.4 trillion — temporarily exceeding Bitcoin's market cap of about $1.31 trillion at the time. According to Forbes, Musk's net worth now stands at roughly $1.2 trillion, down about $59 billion, or 4.6%, from the recent peak.
Bank Involvement and Investor Scrutiny
Despite the pullback, major Wall Street banks remain committed to SpaceX's financing plans, Bloomberg reported. The same lenders that arranged the bridge loan are now expected to lead the bond offering. Retail investor interest also remains strong — some reportedly took out bank loans to boost IPO allocations before trading began. Beyond aerospace, SpaceX is reportedly exploring an acquisition of Anysphere, the developer of the Cursor AI coding platform. As the $20 billion refinancing plan takes shape, investors are closely watching leverage levels and future funding needs.