SpaceX launches $25 billion notes offering, source says

June 23 (Reuters) – Elon Musk’s SpaceX (SPCX.O), opens new tab has launched a five-tranche notes offering aimed at raising at least $25 billion, ​a source familiar with the matter said ‌on Tuesday, as the newly public company seeks funding for its capital-intensive AI expansion.

SpaceX’s AI ambitions carry a hefty ​price tag, requiring tens of billions of ​dollars in investment in data centers, computing hardware ⁠and power infrastructure.

The offering consists of 5-year, 7-year, ​10-year, 20-year, 30-year tenor senior unsecured notes, according ​to a document seen by Reuters. Proceeds will be used to repay borrowings under its bridge loan facility as well ​as for general corporate purposes.

The offering, which is ​SpaceX’s first investment-grade dollar bond issuance, has drawn nearly $85 billion ‌in ⁠orders, the source said.

SpaceX did not immediately respond to a Reuters request for comment.

Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Morgan Stanley are ​managing the ​sale, according ⁠to the document.

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

The rockets-to-AI firm’s shares rebounded on Tuesday, following a recent selloff tied to a ⁠broader ​tech pullback, after a blockbuster ​debut on June 12.