Exclusive SpaceX $40 Billion Debt Deal Faces Higher Costs
SpaceX is finalizing a $40 billion debt raise at higher interest rates than its previous bond sale, according to Semafor. The lowest-rated portion is expected to carry an interest rate of about 8.3%, while a chip-backed piece could price around 7.75% next week. Existing bonds have weakened as investors weigh spending plans, debt levels and broader concerns in AI lending.
SpaceX is nearing an exclusive SpaceX $40 billion debt raise at sharply higher interest rates than when the rocket company last sold bonds, raising the cost of borrowing as concern spreads through AI-linked lending markets.
The lowest-rated portion of the deal is expected to carry interest of about 8.3%, while a safer piece backed by some of SpaceX’s chips is likely to price around 7.75% next week, people familiar with the deal said. The company’s existing bonds have weakened in recent days, adding pressure as the financing approaches its expected completion next week.
The rates are still subject to change before the debt is finalized. Semafor reported that the deal is being led by Apollo and Goldman Sachs; both firms declined to comment.
AI lending jitters raise borrowing costs
The expected rate on the chip-backed debt is more than 1 percentage point above the level at which SpaceX’s current bonds trade, according to the report. That gap reflects a sharp pullback in the AI-loan market over the past few weeks.
Investors are also weighing SpaceX’s spending plans and debt load. The company’s existing bonds weakened in recent days even as strong earnings were reported, with those results overshadowed by concerns about the scale of planned spending and broader jitters around AI-related borrowing.
CoreWeave’s debt selloff has fueled those wider concerns, Semafor reported. Default insurance on SpaceX has also widened, a sign of misgivings among market participants about the company’s plans.
The shift matters because higher borrowing rates make new debt more expensive for SpaceX, while weaker bond prices and wider default insurance point to investors demanding more compensation for risk. The available report does not give a final price for the debt, and the expected rates could still move before the sale closes.
Deal terms are not final
SpaceX is currently considering a merger with Tesla. The report does not say that the proposed merger is part of the debt deal, and the financing terms remain subject to change.
President Donald Trump purchased $5 million in SpaceX bonds in August, Semafor reported. The story did not provide further details about the purchase.
Pricing is expected sometime next week, when the anticipated rate for the safer, chip-backed portion is around 7.75%.
