SpaceX Draws $89 Billion Demand for Debut Bond Offering

SpaceX has drawn about $89 billion of demand for its debut US bond sale, according to people with knowledge of the matter, setting the stage for one of the biggest deals in the US investment-grade market this year.

Elon Musk’s rocket, satellite and AI conglomerate is seeking to raise between $20 billion and $25 billion from the five-tranche offering in a deal that’s expected to price on Tuesday.

At the lower of that range, demand would exceed the bond size by more than four times.

Debt investors, who tend to be more conservative than those in the equity market, are betting on Musk’s ability to deliver on his promises even as the company is projected to burn significant amounts of cash over the next few years.

For more, we speak with Robert Schiffman, Senior Tech Credit Analyst for Bloomberg Intelligence. (Source: Bloomberg)