SpaceX Refinances $20B Debt With Bridge Loan Ahead of IPO

SpaceX secured a US$20 billion bridge loan in March to refinance most of its debt ahead of a planned US IPO, according to Reuters. The loan came from unnamed lenders and reduced SpaceX’s total debt to US$20.07 billion as of March 2, down from US$22.05 billion at the end of 2024. The company may need to use IPO proceeds to repay the loan if other funding does not cover the debt within six months of the listing.

Debt Refinancing Details

The refinancing replaced five debt facilities previously tied to X and xAI. The 18-month loan includes options for two three-month extensions. SpaceX could seek a valuation of approximately US$1.75 trillion in the IPO, though estimates for total IPO fundraising vary widely, ranging from about US$30 billion to US$75 billion.

AI Infrastructure Commitments Behind Debt Increase

The refinancing was driven by recent debt obligations linked to xAI, Elon Musk’s AI company. According to the filing, SpaceX’s debt rose from US$14 billion in 2024 to approximately US$23 billion by the end of 2025, with the increase attributed to “billions in AI infrastructure obligations” tied to xAI. These commitments included a US$4.5 billion lease for AI equipment. The bridge loan refinancing appears tied to near-term funding needs related to these AI commitments rather than routine debt management.