SpaceX's debut U.S. bond sale has drawn roughly $89 billion in orders, according to Bloomberg sources, massively oversubscribing a deal aimed at raising $20 billion to $25 billion. Bankers have upsized the offering, the Financial Times reports, as high borrowing costs lured investors seeking juicier yields.
The aerospace firm is capitalizing on a rate environment that has made corporate debt more attractive to yield-hungry buyers. The move comes after SpaceX's recent IPO, which shifted the company's capital-raising strategy toward the public markets. High demand signals strong investor confidence in Elon Musk's rocket-and-satellite empire.
Bloomberg cites sources saying the company is seeking between $20 billion and $25 billion, while the Financial Times puts the target at $25 billion. The books are roughly three to four times oversubscribed, based on the lowest raise target, reflecting institutional appetite for high-grade speculative debt tied to a marquee growth name.
The bond proceeds will fund ongoing expansion of Starlink's satellite constellation and Starship development, both capital-intensive programs. Investors are betting that SpaceX's revenue streams—from launch services and broadband—can service the debt even as competition intensifies.
The oversubscription underscores the market's hunger for yield in a tight credit spread environment, though some analysts caution that SpaceX's debt is unsecured and its business remains tied to execution risk.