Key facts
- SpaceX is preparing to price a $20 billion debt offering to refinance an existing bridge loan.
- The company's stock, SPCX, has fallen approximately 8.3% over two trading sessions from its peak.
- Moody's, Fitch, and S&P Global Ratings have assigned SpaceX an investment-grade credit rating.
- SpaceX announced plans to acquire AI coding assistant company Cursor for $60 billion in an all-stock deal.
- The IPO prospectus raised approximately $85.7 billion, with about 4% to 5% of shares in the public float.
SpaceX has revealed pricing details for a significant debt offering, aiming to raise $20 billion to refinance an existing bridge loan. This move comes as the company's stock, trading under the ticker SPCX, has experienced a notable decline following its highly anticipated initial public offering.
SpaceX's stock saw a dramatic reversal after reaching an all-time high of $225.64 on June 16, briefly pushing its market capitalization beyond $2 trillion. The stock fell approximately 8.3% over two subsequent trading sessions. This pullback occurred despite credit rating agencies Moody's, Fitch, and S&P Global Ratings assigning SpaceX an investment-grade credit rating, a move typically seen as a positive endorsement for corporate borrowers.
The stock's decline is attributed to several converging factors. Profit-taking on a thin public float, where only about 4% to 5% of shares are available to trade, has amplified price movements. Additionally, the upcoming $20 billion bond offering, which will refinance a bridge loan taken out earlier this year, has become fully visible to investors. The company also announced plans to acquire Anysphere, the creator of the AI coding assistant Cursor, for $60 billion in an all-stock transaction, a deal expected to cause approximately 3.4% dilution to SpaceX's equity.
Morningstar equity analyst Nicolas Owens lowered his fair value estimate for SpaceX to $62 per share from $63 following the Cursor acquisition announcement, citing the "sizable dilution." The original bridge financing for SpaceX was arranged by Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, and Morgan Stanley, which are also expected to manage the new bond deal.