SpaceX Plans $20 Billion Bond Sale to Replace Bridge Loan, Gets 'BBB' Rating from S&P

Since SpaceX's record IPO made it one of the world's most valuable public companies, the financing moves have not stopped. The company is now preparing its first-ever investment-grade bond sale, targeting at least $20 billion, according to Bloomberg, which cited people familiar with the matter.

The five Wall Street banks that provided the original bridge financing — Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, and Morgan Stanley — are expected to lead the offering. Investor calls could begin as early as Monday, though the size and timing remain subject to change.

What the Money Is For

This is not expansion spending. The bond proceeds are earmarked to refinance a $20 billion bridge loan due in September 2027. According to SpaceX's IPO filings with the Securities and Exchange Commission, that bridge facility represents the bulk of the company's $29.1 billion in long-term debt as of March 31, 2026.

SpaceX said in its prospectus that capital expenditures are expected to rise "significantly" going forward, and that it plans to rely on a combination of debt and equity financing to fund future investments. The bond sale is the debt half of that equation.

S&P's 'BBB' Rating and What It Means

S&P Global Ratings assigned SpaceX an issuer credit rating of 'BBB' with a stable outlook, according to Phemex News. That is the lowest rung of investment-grade, solid enough for institutional bond buyers but not fortress-balance-sheet territory.

S&P's analysis flagged SpaceX's strong launch and Starlink connectivity businesses while noting "substantial capital requirements" and "uncertainties" around its AI ventures. The agency projects SpaceX's adjusted leverage will stay below 2.0x through 2029, peaking at 1.2x in 2028, before improving as AI operations begin generating real revenue.

Two other major rating agencies also confirmed investment-grade status, according to Bloomberg, though the specific ratings from Moody's and Fitch were not detailed in the available sources.

The Financial Picture Behind the IPO Glow

BigGo Finance reported Q1 2026 revenue at $4.69 billion, with net losses widening to $4.28 billion. That combination — growing revenue, growing losses — is characteristic of a company burning cash on infrastructure bets it expects to pay off later. Starlink and the Cursor AI acquisition are both cited as future revenue drivers.

SpaceX has also disclosed major long-term contracts: $30 billion with Google (through Alphabet) and $45 billion with Anthropic, according to BigGo Finance. Those figures are eye-catching, but contract value over a multi-year term is not the same as recognized revenue, and neither source specifies the contract durations or terms.

The Bull Case

Oppenheimer raised its SPCX price target Thursday from $190 to $250, reiterating its 'Outperform' rating. The firm cited increased conviction in SpaceX's AI strategy and visibility into the Cursor acquisition, according to TradingView. At Wednesday's close, a $250 target would represent roughly 26% upside.

The investment-grade rating is a genuine milestone. It means SpaceX can access public debt markets at lower interest rates than it would pay on junk-rated paper, reducing the long-term cost of the capital it needs to build out Starlink, Raptor engines, and whatever comes next. Establishing a bond-market track record now also gives the company flexibility for future raises.

The Bearish Case Deserves a Fair Hearing

Critics of the SpaceX trade have a legitimate point: a company losing $4.28 billion in a single quarter while carrying $29.1 billion in long-term debt is not a low-risk investment, regardless of what the stock price implies. The 'BBB' rating itself reflects that tension. S&P is essentially saying the business is creditworthy but the AI bets are unproven and the capital requirements are steep.

CreditSight, cited by BigGo Finance, has separately characterized SPCX as a poor investment at current valuations. That concern does not disappear because Oppenheimer disagrees. Shares fell as much as 10% Thursday before paring losses, suggesting the market is still working through what the post-IPO debt load actually means for equity holders.

Thursday's Stock Move

SPCX declined sharply during Thursday's regular session, falling as much as 10% intraday before recovering to close down approximately 7%, at around $178.44, according to BigGo Finance. That follows a nearly 5% drop Wednesday. Two consecutive sessions of meaningful selling matters in the context of the bond news. Debt issuance dilutes equity holders' claims on future cash flow, even when the proceeds are used for refinancing rather than new spending.

What Comes Next

The unanswered question heading into next week is whether institutional bond buyers price the offering tightly — reflecting confidence in the 'BBB' ratings and SpaceX's contract backlog — or demand a meaningful premium given the company's ongoing losses and unproven AI segment. That spread will be the market's real verdict on SpaceX's credit quality, independent of whatever Oppenheimer or the equity market says the stock is worth.