Report: SpaceX Now Seeking $750 Million Loan

SpaceX launches its Dragon cargo craft on a Falcon 9 rocket from Space Launch Complex 40 at Cape Canaveral Air Force Station in Florida at 5:42 a.m. EDT June 29, 2018. The early-morning launch is the company’s 15th resupply mission to the International Space Station under NASA’s Commercial Resupply Services contract. (Credit: NASA TV)

SpaceX is seeking a leveraged loan of $750 million in an effort being led by Bank of America, Bloomberg reports.

Bloomberg had earlier reported that Goldman Sachs was leading an effort to obtain $500 million in financing for Elon Musk’s company.

The reason for the change was not reported.

  • Smokey_the_Bear

    Good, since its pretty clear, that money will be going to straight to the Starship Enterpri…err, I mean BFR.

  • windbourne

    far more likely that a good chunk of this will go into starlink. The reason is that the sooner that they have this up and making money, the faster that they can pay back loans and spend more on BFR.

  • duheagle

    Probably going to use the money for both things with the divvy to be decided as both things progress.

  • Vladislaw

    I believe the 500 mil was for starlink. When it was reported that SpaceX was looking for money Tesla was at about 255 a share and it is back to 350 .. Elon’s network jumped 5 billion so I would imagine he thought he could get another 250mil and pay for the first BRS as well?

  • Jeff2Space

    I second the opinion that the money will be split between Starlink and BFR/BFS. Considering how many Starlink satellites will need to be launched, a cargo BFR/BFS would be the cheapest way to get the bulk of them into orbit in an economic fashion. These two projects are very synergistic.

  • Steve

    They need to have at least half the constellation active within 5 years. I have no idea how much each individual satellite costs, but multiply that my 2500 or so, and you are talking real money. And even though they will launch these things themselves, that cost is not zero. I assume you aren’t launching the majority of these as secondary payloads, and they all need to leave from Vandy to hit a polar orbit. I’m not even sure you could launch enough times from Vandenberg using an F9 to get the constellation in place. Even if they launch 20 at a time and hope they are all able to make their way to the correct orbital plane, that is still 125 launches. An average of 25 launches per year where they need to replace, at a minimum the second stage, fairing, and deployment mechanism. Plus, they can’t ignore the rest of their paying customers who keep the lights on.

    Of course, then there is also the infrastructure on the ground to build and maintain.

    SpaceX needs a ton of capital. This 750 mil is just a drop in the bucket.

  • Jay Jay

    Yep, my thinking too. Starlink really is a constellation to print money – even a slight improvement in service (and this will be a huge leap for many) would have customers battering down the doors of Starlink – I hope they burn the incumbents who have suckled on the money and put very little back into communities without access at all or awful grindingly slow internet.

  • ThomasLMatula

    Yes, as Teslarati argues in this news story on it.

    https://www.teslarati.com/spacex-starlink-internet-constellation-a-license-to-print-money/

    SpaceX’s Starlink internet constellation deemed ‘a license to print money’

    I hope Elon Musk will be as rich as Jeff Bezos from Starlink. Both know how to spend their money to build a future for humanity.

  • duheagle

    Musk and Bezos dicing to be the first human with a trillion dollar net worth? Oh yeah!

  • duheagle

    Well, the new BFR-ish reusable upper stage for the existing Falcons just announced is probably going to be the main vehicle for Starlink deployments. Not having to build beaucoup new expendable 2nd stages would up the potential launch cadence a lot at the same time it reduced per-launch costs.

  • Steve

    I guess they believe Musk’s estimates here. I don’t. Currently, there are a total of 100 million internet subscribers. 23 million of those subscriptions are in the hands of Comcast, and another 20-ish million in the hands of Charter. Farther down the list is AT&T (15 mil) and Verizon (7 mil). Somehow, Musk thinks he can jump up and claim a majority of the market share, while selling a service that just might be iffy during times of inclement weather. I know. I have suffered thru times of service outages with my Dish service. I wouldn’t want to trust my Internet to the same issues if I had a choice. And he already has competition in rural areas with Hughes Net. I think Starlink has more potential to be a money pit than a money tree. Just look at Iridium, who still can’t even break the 1 million subscriber level after all these years.

  • Steve

    I doubt it. They need to start deploying next year. They can’t really wait for a new stage to be developed.

  • windbourne

    100 million eh?
    https://en.wikipedia.org/wiki/Global_Internet_usage

    If only 100 million internet subscribers, than the world population is around 120-150 million, since about 55-66 % of global population is on-line.

  • Steve

    100 million in the US, and we are one of the best connected countries on the planet. There is already cheap, plentiful internet access throughout most of Europe. I see too many barriers to entry for business in China and Russia. I don’t see the prospects of bring high speed internet connectivity to the third world as a huge money making opportunity either.

  • windbourne

    Americans alone are 2/3 connected. We have 300+millions, so 200 million are connected. That does not include businesses.
    Now,vwhat are the most villified businesses going in America? Yes. Comm utilities. EVERYBODY HATES THEM. Comcast charges something like 250 / month for gigabit. Starlink will be below 100 for gigabit.
    And you think ppl will stay? Not a chance.

  • Steve

    Gigabit is 110/mo from Infinity/Comcast. 2G service is now available for 300/mo, but I can’t imagine they have too many takers. The cell companies are going are also going to start their 5G rollout soon. It will be widely available much before Starlink even gets off the ground. Musk will be hard pressed to be much more than a niche player in the ISP market.

  • windbourne

    Humm. Comcast just came down to 70/month for 1G ( 80126 zip ).

    Still, Comcast is constantly down in the night. I fully expect them to lose big to Starlink.

  • windbourne