00:00Elon Musk's SpaceX, meanwhile, has sold $25 billion of investment-grade bonds.
00:05It replaces costly debt that had helped finance Musk's acquisition of X,
00:11and expensive loans and bonds issued by XAI.
00:14Let's get more now with Bloomberg's Manuel Baigori.
00:17He joins us from Tokyo, actually, this morning.
00:20Manuel, does demand for SpaceX debt suggest that many investors have faith in this company then?
00:29Indeed, Lizzie, it's just remarkable that they were able to pull this off,
00:35and it's a clear sign of confidence that the company has a good outlook, interesting prospects.
00:43I mean, we saw it with the APO just a couple of weeks ago.
00:48It kept us real busy, right?
00:50And we saw the huge demand for that transaction,
00:53and now, obviously, they're tapping the debt markets.
00:56And as you well explained, trying to replace that more costly debt that they had from years before,
01:03when they were acquiring those businesses, including X,
01:06and kind of replacing it with investment-grade bonds.
01:11And that, obviously, bodes well for the company and its financial structure,
01:15and definitely will be a good step for the company's future,
01:22and they look for a more stable strategy as well in the years ahead.
01:28And what should we read into this about the broader story of issuance in the tech sector?
01:37Definitely, there has been a lot of appetite from both issuers and investors, I think,
01:44to tap markets and try to, you know, take advantage of this more benign market environment
01:51to try to become more stable and also kind of with longer-term horizons.
01:57We've seen a number of companies also kind of reorganizing their structure
02:01and kind of like shifting from that more costly, so to speak, high investment-grade kind of like type of
02:10structure.
02:10And I think SpaceX is just the latest example, obviously, very high-profile name that it's been in the news
02:18recently on the IPO front.
02:22I think this was the kind of like the next much-needed step for investors to look at the company
02:29with different eyes
02:31and kind of like not this just risky startup type of company that is buying different businesses,
02:37but also kind of like a more stable, clear strategy of a company where they can invest in
02:44and they shouldn't be too worried about their kind of like credit structure.
02:50So that's a very, very important step to a source investor potential concerns
02:57on kind of like the financial credibility of the company.
03:01And definitely we've seen that across the sector with some high-quality companies
03:05that have been kind of like transforming or shifting towards more investment-grade issues recently as well.
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