Space Exploration Technologies enters binding commitment for approximately $40 billion GPU master finance lease

Commitment: On October 24, 2026, the company entered a binding commitment letter to enter a master finance lease with an entity managed by Apollo Global Management, Inc.

Expected amount: Aggregate principal payments under the lease schedules are expected to total approximately $40 billion.

Lease structure: Each lease schedule would have a term of approximately five to five and one-quarter years, with quarterly rent payable in advance.

Rent formula: Rent would generally equal one-twentieth of the applicable tranche's financed cost, plus a fixed annual rate on the outstanding lease balance and certain ongoing costs and expenses.

Pricing: The fixed rate was not disclosed and will be determined at pricing before the company enters the master finance lease.

Timing: Entry into the lease is expected before year-end 2026, subject to specified closing conditions, and lease schedules are expected to commence during the first half of 2027 upon GPU deliveries.

Closing risk: The company states that the transaction may not close on the anticipated terms or timeline, or at all, and actual deliveries, lease terms, and principal payments may differ.