SpaceX recently made history with a record-setting $75 billion initial public offering, debuting on the Nasdaq on June 12. This IPO made Elon Musk a trillionaire and established the rockets-to-AI company as one of the world's most valuable companies. As of June 19, the company reported holding approximately $100.8 billion in cash and cash equivalents.
Following its public debut, SpaceX has entered the debt market for the first time by launching an offering of senior unsecured investment-grade notes. This move marks the first time any of Elon Musk's companies have borrowed money from public bond investors. While the company's entry into the stock market was met with significant fanfare, it has encountered more questions in the debt market.
The bond sale is intended to bankroll a vast AI build-out and serves as the start of a massive borrowing spree to fund the company's AI ambitions. SpaceX sought to raise between $20 billion and $25 billion through a five-tranche deal. The offering saw strong investor demand, with nearly $90 billion in orders, ultimately allowing SpaceX to raise $25 billion.