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SpaceX is going on a bond binge

Dan Primack

Photo illustration of Elon Musk against an abstract background. — Photo illustration: Shoshana Gordon/Axios. Photo: Al Drago/Bloomberg via Getty Images

SpaceX is seeking $40 billion in debt financing to buy Nvidia chips, with Apollo Global Management leading the process, per multiple reports.

Why it matters: Rising rates haven't curtailed hyperscaler appetites, despite debt bubble concerns voiced Wednesday by Ray Dalio.

Zoom in: The package would include around $30 billion in investment-grade debt and another $10 billion in bank loans.

By the numbers: SpaceX shares are up nearly 16% over the past week, closing yesterday at $171.92 per share. For context, the IPO priced at $135 and the first post-IPO trades were at $150.

Nvidia yesterday hit its own all-time high, giving it a $5.65 trillion market cap.

Go deeper, via the FT: "Insurance and pension funds would be able to buy SpaceX's debt due to its BBB credit rating. ... Its bonds maturing in 2056 are trading at about 85 cents on the dollar, with a yield at about 2.27 percentage points above U.S. Treasuries, similar to the level of junk bonds."

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SpaceX is going on a bond binge

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