Lates News

According to Bloomberg, Elon Musk's artificial intelligence company xAI plans to prepay $3 billion in junk bonds. The company recently merged with SpaceX and will redeem these bonds in advance at a premium of 117 cents per dollar of debt. These bonds were issued in June of this year with the original plan to be outstanding for at least two years. The price of these bonds has recently risen, with a significant increase of approximately 3 percentage points on Monday, reaching close to 117 cents. Companies typically need to pay a premium and interest when prepaying debt. xAI and the lead underwriter, Morgan Stanley, have not yet responded. Elon Musk, with a net worth of $666 billion, plans to take SpaceX public in the coming months, with the fastest possible listing this month after secretly submitting an IPO application. The merged company's total debt is around $180 billion, coming from xAI and the acquisition of Twitter (later renamed X and merged into xAI). Banks are working on financing solutions to alleviate the burden of high interest.