AI Image
SpaceX $40 billion debt deal gets pricey as AI fears spread
Semafor • • business
Key Points:
- SpaceX is finalizing a $40 billion debt raise with significantly higher interest rates than its previous bond offerings, indicating increased market concerns amid the AI sector's volatility.
- The lowest-rated tranche is expected to carry an interest rate of about 8.3%, while a safer, chip-backed portion is likely to price around 7.75%, both over 1 percentage point higher than current SpaceX bond yields.
- The deal is being led by Apollo and Goldman Sachs, though pricing remains subject to change before finalization next week.
- Recent weakening of SpaceX's existing bonds and widening default insurance reflect investor apprehension due to the company's heavy spending, debt load, and broader AI market uncertainties.
- Notably, former President Donald Trump purchased $5 million in SpaceX bonds in August, highlighting continued interest despite market jitters.
