SpaceX confirms bond sale as stock declines

• SpaceX confirms its first-ever bond issuance to repay bridge loan debt from its xAI acquisition.
• Shares of SpaceX (NASDAQ:SPCX) declined 7% in early trade, marking a three-day losing streak.
• The company aims to use proceeds to settle outstanding bridge facility borrowings incurred during February’s xAI purchase.

SpaceX (NASDAQ:SPCX) has initiated its first-ever bond sale to repay outstanding debt following a 7% decline in its share price during early Monday trade.

The current three-day losing streak follows a period of significant stock price volatility since the company completed its initial public offering on June 12.

While the company did not officially disclose the size of the offering, market reports from Bloomberg suggest the bond sale is expected to be in the US$20 billion range.

The bridge loan was secured earlier this year to facilitate the acquisition of xAI, an artificial intelligence startup also led by CEO Elon Musk.

Following the announcement, SpaceX's share price was down 7%.

Investors are now monitoring upcoming equity lock-up expirations, with analysts noting that insiders could potentially sell up to 44% of total shares by early September.

This potential increase in the tradable float represents a significant shift from the current post-IPO float of approximately 4.2%.