SpaceX used a $20 billion bridge loan to slash Musk’s debt costs in half, IPO filing reveals

TL;DR

SpaceX’s IPO filing reveals a $20 billion bridge loan that replaced $17.5 billion of high-interest junk debt from X and xAI. The move cut Musk’s combined annual interest costs roughly in half, to around $900 million.

Elon Musk’s strategy of folding his companies into one conglomerate is already paying off. Regulatory documents filed ahead of SpaceX’s historic IPO reveal that the company secured a $20 billion bridge loan from a group of major banks. That loan was used to retire $17.5 billion of high-interest junk debt accumulated by X and xAI.

The financial benefit is stark. The junk bonds and leveraged loans carried interest rates as high as 12.5 per cent. The bridge loan’s effective rate was 4.58 per cent as of 31 March, according to the filing. That gap cuts the combined annual interest bill roughly in half, to around $900 million.

The bridge loan was arranged...

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