SpaceX's Recent Move Should Have Investors Worried
A little more transparency as to what was waiting right around the corner would have been nice.
Overview
Every company needs working capital, particularly to get things going. Space Exploration Technologies (NASDAQ: SPCX) is no exception.
The timing and scope of SpaceX's most recent fundraising, however, are a bit of a red flag. We're not talking about SpaceX's mid-June initial public offering, which raised proceeds of $85.7 billion when demand exceeded the $75 billion worth of stock it originally intended to issue.
Details
Without nearly as much fanfare as that surrounding the record-breaking June 12 IPO, late last month SpaceX issued $25 billion in bonds with maturity dates extending all the way out to 2056. The primary purpose of these funds was to fully pay off its bridge loan, which stood at $20 billion as of the end of March. Any remaining proceeds were earmarked for "general corporate purposes," although nearly $10 billion more in other debt-based financing remains on the company's balance sheet.
Source
Originally published at www.fool.com.