ADG 6/24: Cold Shot (opens in new tab)

Star Base SpaceX’s monster $25 billion financing package garnered a tepid response, as the firm’s 10-year bonds priced at a 140-basis point premium to Treasurys, some 40 basis points wide of the average triple-B spread among issuers tracked by Bloomberg. The order book registered at $73 billion at the time of deal pricing, lagging the average four-fold coverage ratio seen in the high-grade bond market so far this year. “The equity market owns the upside, bondholders don’t,” Grant Nachman, CIO...