SpaceX Pays Up: $40 Billion Debt Deal Prices Above 8%

• SpaceX nearing $40B debt raise at rates over 1pt above existing bonds • AI lending market retreats; CoreWeave down 36% in October, Oracle CDS at distressed-like levels • Funds aim to expand chips/data centers amid Tesla merger talk and bond market jitters SpaceX is finalizing a roughly $40 billion debt raise at rates well above its prior bond deals, Semafor reported. The riskiest tranche is expected near 8.3%, with a chip-secured tranche near 7.75% — both over a point above where existing SpaceX bonds trade. Apollo and Goldman Sachs are leading the offering, with final pricing expected next week. CEO Elon Musk is raising funds to expand chips and data centers. The higher rates reflect a broader pullback in AI-related lending. CoreWeave shares are down 36% this month, with unsecured debt yielding about 15% and five-year CDS spreads near 1,145 basis points — distressed territory. Even investment-grade Oracle has seen its five-year CDS trade around 295 basis points, a level typical of high-yield issuers. Meta Platforms added to the pressure Thursday, falling over 7% after raising its 2026 capex forecast to $135-145 billion and announcing a new non-voting stock to help fund it; the cost of insuring Meta's debt hit a record. SpaceX's existing bonds have weakened too, with strong earnings overshadowed by spending plans and debt concerns. The timing is sensitive given a possible SpaceX-Tesla merger and President Trump's $5 million purchase of SpaceX bonds in August. Analysts warn the broader AI borrowing binge leaves firms exposed to demand drops and rapidly depreciating chips — some of which now back SpaceX's new debt. SpaceX shares were up 2.24% at $147.99 Friday.