Speaking on "Bloomberg Open Interest," Marathon Asset Management chairman Bruce Richards defended the aerospace manufacturer’s financial health ahead of an expected IPO, noting that billions of dollars in liabilities are standard for an enterprise that routinely vaporizes its own inventory.
NEW YORK — Brushing off concerns about the aerospace company’s balance sheet ahead of a highly anticipated initial public offering, Marathon Asset Management CEO Bruce Richards reassured investors Tuesday that SpaceX’s staggering debt levels are perfectly normal and comprehensively backed by a series of massive, scorched craters near Boca Chica, Texas.
Appearing on "Bloomberg Open Interest," Richards praised the rocket manufacturer as the "biggest rising star of all time," emphasizing that traditional metrics of corporate solvency do not apply to an enterprise whose primary business model involves converting thousands of tons of steel into a brief, spectacular fireball over the Gulf of Mexico.
When you look at the underlying collateral—namely, a rapidly expanding field of aerospace shrapnel and a launchpad that has been completely obliterated multiple times—the debt-to-equity ratio is actually quite conservative.
Richards went on to explain that SpaceX is uniquely positioned across the board, citing the company's unparalleled ability to secure billions in institutional leverage and immediately drop it into the ocean. The asset manager concluded the interview by urging retail investors to buy in at the IPO before the company's valuation fully detaches from Earth's gravitational pull and drifts untethered into the freezing void of space.