SpaceX Prices $25B in Bonds, SPCX Stock Falls 1% Overnight

XAI-2.57%
According to Bloomberg, SpaceX priced $25 billion in senior unsecured notes on Tuesday (June 24), with coupons ranging from 5.35% to 6.65% and maturities from 2031 to 2056. SPCX shares fell as low as $147.11 early Tuesday, down about 1% overnight and below its $150 June 11 IPO level. The company plans to use proceeds to repay a $20 billion bridge loan used to clear xAI-related debt. SpaceX's refinancing is expected to reduce annual interest costs to approximately $1.5 billion from the prior $1.8 billion servicing charge. Susquehanna Financial Group initiated coverage on Monday with a Neutral rating and $170 price target, cautioning that current valuations assume "very aggressive" growth expectations.
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