Elon Musk's SpaceX secured a $20 billion bridge loan last month, a significant move to refinance existing debt just before filing for its U.S. initial public offering.
The borrowing, revealed in regulatory filings, came from an unnamed syndicate of lenders. The loan agreement stipulates that SpaceX could be required to use IPO proceeds for repayment if not settled by other means within six months of the offering. SpaceX has not yet commented on the development.
Anticipated to be the largest IPO in history, SpaceX, a leader in rockets and artificial intelligence, is projected to achieve a valuation of approximately $1.75 trillion upon its summer listing.
The $20 billion bridge loan consolidated five prior debt facilities, including loans tied to Musk's X social media platform and his artificial intelligence venture, xAI. This refinancing reduced SpaceX's total debt to $20.07 billion as of March 2, down from $22.05 billion at the close of 2024.
Bridge loans are typically short-term financing instruments, often used around major corporate events and refinanced later with longer-term debt. This specific loan has an 18-month term, with potential for two three-month extensions.