SpaceX refinanced debt with stopgap $20 billion loan before IPO filing

NEW YORK,  (Reuters) – Elon Musk’s SpaceX took out a $20 billion bridge loan last month to refinance much of its existing debt ​ahead of its blockbuster U.S. initial public offering, according to a ‌regulatory filing.

The borrowing, revealed for the first time in excerpts of its regulatory filings that were reviewed by Reuters, came from a syndicate of lenders which were not identified. Under ​the terms of the loan, SpaceX could be forced to use proceeds ​from its IPO to repay it, if it is not repaid ⁠with other funding sources within six months of the offering.

SpaceX did not ​respond to a request for comment.

SpaceX is expected to be the largest IPO in history ​when it lists this summer. The rocket and artificial intelligence conglomerate is expected to garner a valuation in the range of $1.75 trillion, Reuters previously reported.

The information was contained in an S-1 ​document, which companies preparing to go public file with the U.S. Securities and ​Exchange Commission to disclose details about their business and finances to potential investors. Reuters reviewed ‌an ⁠excerpt of the SpaceX S-1, which was filed confidentially.

The bridge loan replaced five existing debt facilities, of which two were term loans tied to Musk’s X social media platform and three borrowings by xAI, the billionaire’s artificial intelligence business. The new ​loan helped to ​reduce SpaceX’s total ⁠debt to $20.07 billion as of March 2, compared with $22.05 billion at the end of 2024, the filing added.

Bridge loans are ​common financing tools with relatively short lifespans and are often ​refinanced at ⁠a later time with new, longer-term debt. The SpaceX bridge loan runs for 18 months, with the possibility of two three-month extensions.

Companies often choose them around a major ⁠event, ​such as a merger or large acquisition, especially ​if that move is expected to be beneficial for the company and will ultimately lower its borrowing ​costs.