March 2 (Reuters) - Elon Musk's xAI plans to repay $3 billion of high-yield bonds early, Bloomberg News reported on Monday, citing people with knowledge of the matter.
When a company pays back a loan ahead of schedule, it usually has to pay a penalty to investors, plus the interest the lenders were counting on making over the previously agreed period.
The notes jumped about three points on Monday to about $1.17 on $1, the report said, citing Trace pricing data. The securities were sold in June 2025
with a structure that indicated the debt was expected to remain outstanding for at least two years.
Morgan Stanley led a $5 billion debt package for xAI last year, consisting of high-yield bonds and loans designed to fuel the company's aggressive expansion into artificial intelligence.
In February, SpaceX acquired the artificial intelligence startup in a record-setting deal that valued xAI at $250 billion, giving the rocket maker greater flexibility to streamline xAI's capital structure.
SpaceX is preparing a blockbuster public listing later this year that could value it at over $1.5 trillion.
With the combined business holding a significant amount of debt, bankers have been working on a financing plan that could trim some of the heavy-interest costs that the companies have worked up in recent years, the Bloomberg report said.
XAI and Morgan Stanley did not immediately respond to requests for comment. Reuters could not independently verify the report.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Alan Barona)
