SpaceX launches debt sale to raise capital, reports $100.8 billion in cash

Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST

June 22 : Elon Musk's SpaceX launched its first-ever notes offering on Monday and said it had about $100.8 billion in cash and cash equivalents as of June 19, days after its blockbuster U.S. stock market IPO.

The rockets-to-AI company debuted on the Nasdaq on June 12 after raising $85.7 billion from its initial public offering, making it one of the world's most valuable firms.

SpaceX has increased spending on AI infrastructure and the development of its next-generation Starship rocket, investments that have weighed on profitability despite strong growth at its Starlink satellite internet business.

Its revenue rose 33 per cent to $18.67 billion last year, though the company reported a net loss after heavy spending and the integration of Musk's artificial intelligence venture, xAI.

CNA Games

Guess Word
Crack the word, one row at a time

Buzzword
Create words using the given letters

Mini Sudoku
Tiny puzzle, mighty brain teaser

Mini Crossword
Small grid, big challenge

Word Search
Spot as many words as you can
Show More
Show Less

SpaceX shares fell about 7 per cent in early trading.

The company did not disclose the size or pricing terms of the proposed notes. The proceeds would be used to repay borrowings under its bridge loan facility, cover related fees and expenses as well as for general corporate purposes, it said.

SpaceX held $15.9 billion in cash and cash equivalents at the end of March, according to its IPO filing.

Credit ratings agencies assigned the company investment-grade ratings last week, signaling confidence in SpaceX's financial stability as it moves forward with costly AI plans.

Moody's issued a "Baa1" and Fitch a "BBB+" rating, indicating that SpaceX's debt is considered investment-grade and carries moderate credit risk, with sufficient capacity to meet its financial commitments.

Newsletter

Week in Review

Subscribe to our Chief Editor’s Week in Review

Our chief editor shares analysis and picks of the week's biggest news every Saturday.

Sign up for our newsletters

Get our pick of top stories and thought-provoking articles in your inbox

Subscribe here

Get the CNA app

Stay updated with notifications for breaking news and our best stories

Download here

Get WhatsApp alerts

Join our channel for the top reads for the day on your preferred chat app

Join here