Banks complete sale of debt linked to Musk’s $44 billion Twitter buyout- report

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Investing.com -- A consortium of banks, including Morgan Stanley, Bank of America, Barclays, and Mitsubishi UFJ (NYSE:MUFG), has successfully sold the final portion of debt associated with Elon Musk’s $44 billion acquisition of the social media platform Twitter, now known as X, Reuters reported today.

The banks sold loans worth $1.2 billion at 98 cents on the dollar, which carry a yield of 9.5%. Musk’s strong relationship with U.S. President Donald Trump and the potential for increasing revenue at X have enabled the banks to sell off nearly all of the $13 billion they had held on their balance sheets for close to two years.

The purchase of Twitter by Musk was financed through a combination of a $6.5 billion secured term loan, a $500 million revolving credit facility, a $3 billion unsecured loan, and $3 billion of secured loans. Morgan Stanley, along with six other lenders, played a part in Musk’s acquisition by providing a total of $13 billion in loans.

Earlier in the month, it was reported that Morgan Stanley had put up for sale the last piece of its $1.23 billion of debt tied to X. This was offered as a fixed-rate loan with an interest rate of 9.5% and a discounted price range of 97.5 cents to 98 cents on the dollar.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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