(Reuters) -Morgan Stanley is selling the last $1.23 billion of debt related to Elon Musk’s $44 billion buyout of social media platform Twitter, now called X, a person familiar with the matter said on Thursday. The bank is offering the debt in the form of a fixed-rate loan at an interest rate of 9.5% and […]
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Morgan Stanley to sell remaining $1.23 billion of X debt, source says
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(Reuters) -Morgan Stanley is selling the last $1.23 billion of debt related to Elon Musk’s $44 billion buyout of social media platform Twitter, now called X, a person familiar with the matter said on Thursday.
The bank is offering the debt in the form of a fixed-rate loan at an interest rate of 9.5% and a discounted price of 97.5 to 98 cents on the dollar, the person added.
The move would allow the investment bank to shed the debt tied to a deal that drew significant attention. Musk has dramatically reshaped the social media platform since taking control.
Besides Morgan Stanley, other lenders including Bank of America, Barclays and Mitsubishi UFJ had also participated in Musk’s buyout, lending him a total of $13 billion.
Musk’s close relationship to U.S. President Donald Trump and prospects of X’s improving revenue allowed banks to offload almost all of the $13 billion they had been holding on their books for nearly two years.
The acquisition was funded by 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 and X did not immediately respond to Reuters requests for comment.
Bloomberg News reported the development earlier in the day.
Last month, Musk said his AI company, xAI, had acquired X.
(Reporting by Tatiana Bautzer in New York and Arasu Kannagi Basil in Bengaluru; Editing by Saumyadeb Chakrabarty and Shounak Dasgupta)