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(Reuters) – Morgan Stanley has commenced the process of selling off the remaining $1.23 billion in debt associated with Elon Musk’s substantial $44 billion acquisition of Twitter, which has been rebranded as X. This information was reported on Thursday by Bloomberg News, citing an individual familiar with the situation.
Musk’s close ties to former President Donald Trump, alongside expectations for enhanced revenue generation from X, have facilitated banks in unloading nearly all of the $13 billion in debt that they had carried for close to two years.
The fixed-rate loan is being offered at an interest rate of 9.5% with a price discount ranging from 97.5 to 98 cents on the dollar, as reported by Bloomberg News. Commitments for this deal are expected to be finalized by April 28.
As of now, neither Morgan Stanley nor X has responded to requests for comments from Reuters.
To finance the acquisition of X, Musk utilized a combination of financial instruments, including a $6.5 billion secured term loan, a $500 million revolving credit facility, a $3 billion unsecured loan, and an additional $3 billion in secured loans.
Source
finance.yahoo.com