Elon Musk's SpaceX received a $20 billion bridge loan last month, paving the way for "the largest IPO in history".

A regulatory document shows that Elon Musk's SpaceX received a $20 billion bridge loan last month to refinance most of its existing debt, paving the way for its US initial public offering (IPO). The media found out about this loan from the regulatory document, with the funds coming from an unnamed consortium of banks. According to the loan terms, if SpaceX fails to repay the loan through other financing channels within six months after the IPO, it may be forced to use the IPO proceeds to repay the loan. SpaceX has not responded to requests for comment. SpaceX is expected to land on the US stock market this summer, potentially becoming the largest IPO in history. Earlier reports indicated that the valuation of this rocket and artificial intelligence giant is expected to reach around $1.75 trillion. The relevant information is disclosed in the S-1 listing application document. Companies planning to list in the US must submit this document to the Securities and Exchange Commission (SEC) to disclose core operational and financial information to potential investors. The document also shows that this bridge loan replaced five existing debt arrangements, including two regular loans related to Musk's social platform X and three loans from Musk's artificial intelligence company xAI. As of March 2, this new loan has reduced SpaceX's total debt to $20.7 billion, with debt reaching $22.05 billion by the end of 2024. Bridge loans are common short-term financing tools in the market, with a short duration and typically replaced by long-term debt afterwards. This SpaceX bridge loan has a term of 18 months and can be extended twice for three months each time. Companies often apply for bridge loans at critical points such as mergers and major acquisitions, especially when such actions benefit operations and ultimately reduce financing costs.