IPO landed quickly and is planning to refinance! SpaceX intends to issue at least $20 billion in bonds, and its stock price has experienced a roller coaster.

According to sources familiar with the matter, SpaceX, under the ownership of Elon Musk, is planning to hold a conference call with investors as soon as next week to discuss issuing bonds after completing a record-breaking IPO. The bond issuance is expected to be at least $20 billion, and the investor communication meeting could start as early as next Monday, with the issuance plan and timing still subject to possible adjustments. Elon Musk's integrated company, which includes rocket, satellite, and artificial intelligence businesses, is planning its first investment-grade U.S. dollar bond issuance. The company has received a BBB range rating from three major rating agencies, paving the way for funding after the IPO. The funds raised from the bond issuance will be used to replace a $20 billion bridge loan due in September 2027. According to IPO documents submitted to the SEC, as of March 31, this loan accounts for most of the company's $29.1 billion long-term debt. Sources state that Bank of America Corp, Citigroup, JPMorgan, Goldman Sachs Group, Inc., and Morgan Stanley jointly provided the bridge loan and will lead the bond issuance. Moody's Corporation and Fitch have rated SpaceX's debt as Baa1 and BBB+ respectively, three notches higher than junk status. S&P Global, Inc. has given a BBB rating. CreditSight analyst Matt Woodruff commented on SpaceX's potential bond issuance, stating, "The company may want to establish a strong track record in the bond market as quickly as possible. They will need funds for capital expenditures in the future, so from that perspective, the sooner the better." SpaceX stated in its submitted documents that future capital expenditures will "increase significantly," and it plans to provide funding for future investments through "various debt and equity financing schemes." SpaceX reported a net loss of $4.28 billion in the first quarter, with revenues of $46.9 billion, compared to a net loss of $528 million and revenues of approximately $4 billion in the same period the previous year. SpaceX's stock price has experienced significant volatility since going public. After completing its record-breaking IPO, the stock price of SpaceX has fluctuated. The stock fell by 3.6% on Thursday, with a cumulative decrease of 8.3% over two days. However, the latest closing price of the company is still 37% higher than the IPO price of $135. At the close, the company's total market value reached $2.4 trillion, making it the sixth-largest company globally. "After experiencing such a rise, the subsequent drop for a day or two seems more like fatigue than a fundamental problem. The stock price almost soared vertically after the IPO, with few outstanding shares, so buyers need a breather," said Dave Mazza, CEO of Roundhill Financial. "I'm watching the IPO price of $135. As long as the stock price remains well above that level, I believe the stock is digesting the strong gains of the past week, not something to worry about." Retail trading has also had an impact on SpaceX's stock price volatility. Retail investors were allocated about 20% of the shares in the SpaceX IPO. In the initial days of SpaceX trading, retail investors were its largest net buyers, exceeding investments in other popular assets like NVIDIA Corporation. According to Vanda Research data, retail investment in SpaceX decreased on Wednesday, with a net buy of only $2.3 million at closing. Michael Monaghan, partner and portfolio manager at Founder Funds, said that due to investors' high expectations of future revenue growth for SpaceX without a clear path to realization, the stock price volatility may continue. Founder Funds holds shares of SpaceX. "We are very confident in holding this stock because we expect revenue to reach $200 billion by 2030," he said, noting that other institutions have even higher forecasts. "But whether in a literal or metaphorical sense, you need a rocket to achieve such revenue goals." He added, "Space exploration is full of challenges, launch anomalies, technical challenges, environmental issues, and many other factors that could cause delays, so all estimates should be treated with caution." Despite experiencing volatility in the past few trading days, SpaceX's stock price may receive some support in the coming weeks as it is included in indices. Nasdaq has adjusted rules to allow large companies to enter indices faster after an IPO, and SpaceX is expected to be included in the Nasdaq 100 index after 15 trading days. Additionally, SpaceX will soon be eligible for inclusion in the FTSE Russell and MSCI indices. Predictive index rebalancing provider Intropic estimates that about 30% of SpaceX's free-floating shares will be held by passive investors just two weeks after the IPO. This demand, along with a lower proportion of floating shares, may exert upward pressure on SpaceX's stock price. Dec Mullarkey, Managing Director of SLC Management, said, "There is still a lot of noise in the trading market. This stock will certainly have some tactical buying. It usually takes a few weeks to digest these purchases. Therefore, we are still in the early stages of price discovery and cannot yet determine the reasonable trading range for the stock."