SpaceX’s $40 Billion Nvidia Financing Faces Higher Borrowing Costs

SpaceX is planning a $40 billion financing through a special-purpose entity to fund Nvidia chip purchases, with market turbulence making negotiations over borrowing costs more difficult. The proposed package would use three 144A bond tranches. The junior tranche would total $25 billion to $30 billion, while the other two would be $10 billion and up to $5 billion. SpaceX wants to keep the related liabilities off its balance sheet to protect its investment-grade credit rating. Credit-market turbulence has pushed borrowing costs higher across the industry, adding difficulty to pricing discussions.

Source: TokenPost