Elon Musk's SpaceX Cuts Loan Deal by $500 Million
- SpaceX raises $250 million despite demand for full amount
- Musk switched bankers during deal after Goldman balked
Elon Musk
Photographer: Patrick T. Fallon/BloombergThis article is for subscribers only.
SpaceX slashed the size of the leveraged loan it sought by $500 million, according to people with knowledge of the matter, the latest twist in a saga that had already seen Elon Musk’s closest ally on Wall Street balk at the terms of the deal.
Space Exploration Technologies Corp. reduced the loan to $250 million despite having enough investors on board to reach the targeted $750 million, the people said. The seven-year debt priced on Tuesday at 99 cents on the dollar and pays interest at 425 basis points above Libor, within the initial guidance for the bigger loan, the people said.