Elon Musk's SpaceX took out a $20-billion bridge loan last month to refinance much of its existing debt.

NEW YORK — Elon Musk’s SpaceX took out a $20-billion bridge loan last month to refinance much of its existing debt ahead of its blockbuster US initial public offering (IPO), according to a regulatory filing. The borrowing, revealed for the first time in excerpts of its regulatory filings that were reviewed by Reuters, came from a syndicate of lenders which were not identified. Under the terms of the loan, SpaceX could be forced to use proceeds from its IPO to repay it, if it is not repaid with other funding sources within six months of the offering. SpaceX is expected to be the largest IPO in history when it lists this summer. The rocket and artificial intelligence conglomerate is expected to garner a valuation in the range of $1.75 trillion, Reuters previously reported. The information was contained in an S-1 document, which companies are preparing to go public with the United States Securities and Exchange Commission to disclose details about their business and finances to potential investors. Reuters reviewed an excerpt of the SpaceX S-1, which was filed confidentially. The bridge loan replaced five existing debt facilities, of which two were term loans tied to Musk’s X social media platform and three borrowings by xAI, the billionaire’s artificial intelligence business. The new loan helped to reduce SpaceX’s total debt to $20.07 billion as of March 2, compared with $22.05 billion at the end of 2024, the filing added. Bridge loans are common financing tools with relatively short lifespans and are often refinanced at a later time with new, longer-term debt. The SpaceX bridge loan runs for 18 months, with the possibility of two three-month extensions. Companies often choose them around a major event, such as a merger or large acquisition, especially if that move is expected to be beneficial for the company and will ultimately lower its borrowing costs.

Future spacecraft could use a single propellant to perform both rapid movements and slow, highly controlled adjustments.

The S&P 500 and Nasdaq indexes fell on Tuesday as a rebound in technology shares faded.

Alphabet entered a cloud service agreement with SpaceX to pay $920 million per month for 200 megawatts of capacity from October 2026 through June 2029.