xAI plans to repurchase $3 billion in debt ahead of SpaceX IPO—Bloomberg

LootboxPhobia · 2026-03-03T06:35:23+00:00

Elon Musk's artificial intelligence company xAI plans to redeem $3 billion of junk bonds early at a price of 117 cents on the dollar to support the listing process of its rocket company SpaceX. The early redemption of these bonds may incur penalties and interest.

LootboxPhobia

2026-03-03 06:35:23

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Investing.com - According to Bloomberg, citing sources and compiled data, Elon Musk’s artificial intelligence startup xAI plans to提前 repay $3 billion in junk bonds.

Sources say Musk recently merged xAI with his rocket company SpaceX, which will redeem its $3 billion high-yield bonds at approximately 117 cents on the dollar. These securities were issued in June, and their structure indicates that the debt is expected to last at least two years.

According to Trace pricing data, the trading price of these bonds has risen in recent weeks, jumping about 3 points to nearly 117 cents on the dollar on Monday. When a company repays bonds early like this, it usually must pay a penalty to investors, as well as interest that would have been earned during the scheduled period.

The world’s richest person with a net worth of $666 billion, Elon Musk, is seeking to take SpaceX public within the next few months. Bloomberg reported last week that the Texas-based company, located at the Starship base, plans to secretly file for an IPO as early as this month.

Early redemption will keep SpaceX on track for its planned IPO in June.

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