SpaceX shares fall for third day on USD20b bond offering

The news: Shares in SpaceX fell for a third consecutive session after the company announced plans to issue investment-grade bonds for the first time as part of a broader funding push to support its artificial intelligence ambitions.

Shares plunged 16% on Monday to close at USD154.60 ($220), its lowest level since listing.

The context: SpaceX is seeking to raise at least USD20 billion through the bond offering, according to Bloomberg. Banks including Goldman Sachs are arranging investor calls on Monday, which is expected to include maturities ranging from five to 30 years.

The proceeds will be used to refinance a bridge loan of approximately the same size, which accounts for the majority of SpaceX’s USD29.1 billion in long-term debt, according to Bloomberg.