SpaceX Short-Term Bonds See Strongest Demand in Latest Offering, Signaling Cash Flow Concerns

According to Bloomberg and people familiar with the transaction, short-term bonds with the lowest risk received the strongest demand in SpaceX's recent debt offering. The preference, combined with higher yield spreads the company had to pay, likely reflects investor concerns about its cash flow situation. SpaceX continues to burn cash, with S&P Global Ratings predicting the company will likely sustain negative cash flow through 2030, accelerating significantly next year. While revenue is expected to grow, spending is projected to increase at a faster pace.
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