This SpaceX paper is money good and better than most sovereign debt. Also means that everyone else except IG-grade hypers will price at 10-12% in 2027.
SpaceX $SPCX is finalizing a $40 billion debt raise at sharply higher borrowing costs than its previous financing, according to Semafor.
The lowest-rated portion is expected to carry an interest rate of around 8.3%, while a safer portion backed by AI chips could price near 7.75%.
The safer portion is expected to price more than 1 percentage point above where SpaceX's existing bonds trade.
The deal, led by Apollo and Goldman Sachs, is expected to be finalized next week.