SpaceX is selling investment-grade bonds for the first time in what¡¯s expected to be the start of a massive borrowing spree to fund the company¡¯s AI ambitions following its record $75 billion IPO.
Banks including Goldman Sachs Group are arranging calls with investors on Monday, according to a person with knowledge of the matter, who asked not to be identified because they¡¯re not authorized to speak publicly. A bond sale is expected to follow, with maturities of between five and 30 years, according to the person.
The planned note issue is highly unusual in the high-grade bond market, where investors typically lend money to established companies that make cars or sell life insurance. SpaceX hasn¡¯t been profitable, and according to a note last week from S&P Global Ratings is expected to burn cash through 2029.
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