Taking advantage of its capacious new market cap, Space Exploration Technologies announced Wednesday the pricing of an inaugural $25 billion bond issue.
In a move to lower its debt costs while expanding its debt load, SpaceX priced three tranches of notes set to close on Friday:
- $7.0 billion of 5.350% senior notes due 2031,
- $6.0 billion of 5.650% senior notes due 2033;
- $6.0 billion of 5.875% senior notes due 2036;
- $2.5 billion of 6.600% senior notes due 2046; and
- $3.5 billion of 6.650% senior notes due 2056
The company says it plans to use the funds to pay off its existing bridge loan facility in full, with any remaining funds used to meet corporate obligations.
SpaceX debuted its IPO on the Nasdaq June 12 at $135 per share, raising more than $86 billion for the company while valuing it at $1.77 trillion. On Wednesday morning, SpaceX shares opened at $150.84.
Gibson Dunn & Crutcher advised the company on the new debt issue as they did on the IPO and previous other SpaceX transactions. Hillary Holmes led from Houston with Doug Horowitz in New York and Harrison Tucker in Houston. Rounding out the team were of counsel Rodrigo Surcan (New York), with Lawrence Lee (New York), Malakeh Hijazi (Houston), Lachlan McLeod (Houston), Michael Cannon (Dallas), Kate Long (New York) and Sophia Helverson (Los Angeles).