Musk’s xAI to buy back $3 billion of debt early in run-up to IPO
Elon Musk’s artificial intelligence startup xAI is planning to pay back $3 billion of junk bonds early, according to people with knowledge of the matter and data compiled by Bloomberg.
The company, which Musk recently combined with his rocket business SpaceX, is set to redeem its $3 billion of high-yield bonds at about 117 cents on the dollar, the people said, a significant premium that reflects the unusual move to pay down the obligation so early. The securities were sold in June, with a structure that indicated the debt was expected to remain outstanding for at least two years.
