SpaceX issues $25 billion bond to restructure debt and lower interest

BlockBeats News, June 24th, SpaceX issued $25 billion of investment-grade bonds on Tuesday, marking the company's completion of the final step in replacing high-cost debt. This high-cost debt was previously used to finance Musk's 2022 acquisition of X (then known as Twitter), as well as the loans and bonds issued by the xAI artificial intelligence lab last year to offset its rapid cash burn. If these entities had not been merged into SpaceX, they would have paid about $1.8 billion in interest expenses on a total debt of $17.5 billion this year. Now, the merged SpaceX will bear an annual interest cost of approximately $1.5 billion with a $25 billion initial bond issuance.