SpaceX's surprise move into the debt markets has sent shockwaves through the corporate finance sector, as Elon Musk's conglomerate prepares to raise a staggering £15.1bn via an investment-grade bond sale. This marks a significant shift towards debt financing for the company, which plans to use these funds to support its ambitious AI ambitions and refinance a substantial portion of its £29.1bn long-term debt.
The £14.8bn short-term bridge loan, taken out in February 2026 to pay off xAI's debts after it was acquired by SpaceX, will be refinanced with the bond proceeds. This move is expected to reduce the company's borrowing costs significantly, thanks to its recent investment-grade ratings from Moody's, Fitch, and S&P Global.
SpaceX's chief financial officer, Bret Johnsen, has stated that the company intends to rely heavily on debt financing going forward, with plans to tap into the bond market instead of issuing equity. Analysts at Oppenheimer & Co predict that debt will be the primary source of funding for SpaceX, supplemented by roughly £40 billion in additional equity.
The funds raised through this bond sale are expected to support SpaceX's AI initiatives, which are forecast to generate significant earnings growth over the next few years. The company has already secured contracts worth approximately £75 billion to provide computing power to Google and Anthropic PBC, a major boost to its bottom line.