SpaceX bankers kick off marketing for bond sale

High-grade offering is the latest in a wave of jumbo deals from tech firms in AI race.

- By BRIAN SMITH, MICHAEL GAMBALE AND DAVIDE BARBUSCIA

GENARO MOLINA Los Angeles Times ELON MUSK'S rocket, satellite and AI conglomerate is seeking to raise at least $20 billion from the bond offering. Above, a SpaceX facility in Hawthorne.

SpaceX is selling investment-grade bonds for the first time in what’s expected to be the start of a massive borrowing spree to fund the company’s AI ambitions after its record $75-billion initial public offering of stock.

Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley — the banks that provided temporary bridge financing to the company — were arranging calls with investors on Monday, according to a person with knowledge of the matter, who asked not to be identified because they're not authorized to speak publicly.

A bond offering is expected to follow, with maturities of between five and 30 years, the person said.

Elon Musk’s rocket, satellite and artificial intelligence conglomerate is seeking to raise at least $20 billion from the offering, Bloomberg reported last week. Proceeds will refinance the bridge loan of roughly the same size, a facility that makes up the bulk of SpaceX’s $29.1 billion in long-term debt.