SpaceX issues $25 billion in bonds to restructure debt and reduce interest costs

Glonghui June 24th｜SpaceX issued $25 billion of investment-grade bonds on Tuesday, marking the company's final step in replacing high-cost debt. This high-cost debt was previously used to finance Musk’s 2022 acquisition of X (formerly known as Twitter), as well as loans and bonds issued last year by the artificial intelligence lab xAI to cover its rapid cash burn. If these entities had not been merged into SpaceX, they would have paid approximately $1.8 billion in interest expenses this year on a total debt of $17.5 billion. Now, the merged SpaceX will bear about $1.5 billion in annual interest costs with its inaugural $25 billion bond issuance.