A group of banks, including Morgan Stanley, Bank of America, Barclays, and Mitsubishi UFJ, has sold the last piece of debt linked to Elon Musk’s $44 billion acquisition of Twitter, now known as X, according to a source familiar with the transaction.
The debt, totaling $1.2 billion, was sold at 98 cents on the dollar, offering a yield of 9.5%, the source added.
Musk’s strong ties with former U.S. President Donald Trump and expectations of improved revenue for X have helped the banks offload almost all of the $13 billion in loans they had held for nearly two years.
The buyout was financed through a mix of loans, including a $6.5 billion secured term loan, a $500 million revolving credit facility, a $3 billion unsecured loan, and $3 billion in secured loans. Morgan Stanley, along with six other lenders, provided Musk with a total of $13 billion in funding.
Earlier this month, Reuters reported that Morgan Stanley was offering the remaining portion of its $1.23 billion debt related to X as a fixed-rate loan at 9.5% interest, priced at a discounted rate of 97.5 to 98 cents on the dollar.
Morgan Stanley, Barclays, Mitsubishi UFJ, and X did not immediately respond to requests for comment. Bank of America declined to comment.
The Wall Street Journal first reported the news. Last month, Musk announced that his AI company, xAI, had acquired X, which was valued at $33 billion in the deal.
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