SpaceX nets $25B bond deal to swap high-cost X and xAI debt – Bloomberg Report

VoM News Desk | June 24, 2026 | 01:39 PM IST | Breaking News, Business, World | Follow on Google News

SpaceX nets $25B bond deal to swap high-cost X and xAI debt – Bloomberg

VoM News Desk, June 24, 2026: SpaceX, the rocket company run by Elon Musk, raised $25B in an investment-grade bond sale in the last month as it refinance costly debt on its social media platform X and artificial intelligence business xAI, people familiar with the matter said Wednesday, per Bloomberg.

SpaceX investors see rocket company’s cash flow supporting high-cost Musk businesses like xAI. The bond issue replaces financing raised by Musk in the junk bond market to pay for his acquisitions of Twitter – renamed X – and to fund the buildout of xAI, and reduces SpaceX annual interest cost burden by about $300M to about $1.5 billion.

It received a “big overweight” by some money managers amid huge investor demand, with orders of $89 billion, and marks the second-largest high-yield bond issued this year, after LVMH.

Investors are betting on SpaceX revenue derived from its launch and Starlink services to cushion the losses at xAI, which isn’t profitable and requires huge cash injections in data centres and computing capacity.

It marks a bet by bondholders that the rocket entrepreneur has more space than assumed to raise a debt load he continues to issue against his companies-and gives him a more accessible funding source in the $1 trillion investment grade debt market-to help finance big data centres that his businesses and other companies may need to expand artificial intelligence capabilities.

VoM News Desk

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