A group of banks, including Morgan Stanley, Bank of America, Barclays, and Mitsubishi UFJ, has sold the final portion of debt tied to Elon Musk’s $44 billion acquisition of Twitter, now called X. According to a source familiar with the matter, the $1.2 billion in loans sold at 98 cents on the dollar, offering a 9.5% yield.
This sale nearly clears the $13 billion in debt the banks had held for almost two years. Musk’s close ties to former President Donald Trump and growing confidence in X’s revenue prospects reportedly helped lenders move the remaining debt.
The original financing package included a $6.5 billion secured term loan, a $500 million revolving credit facility, a $3 billion unsecured loan, and $3 billion in additional secured loans. Morgan Stanley led the effort, joining six other lenders who backed Musk’s 2022 buyout of Twitter.
Earlier this month, Reuters reported that Morgan Stanley offered the final piece of its $1.23 billion exposure. The fixed-rate loan carried a 9.5% interest rate and was priced between 97.5 and 98 cents on the dollar. That offering has now closed, according to the source.
Neither Morgan Stanley, Barclays, Mitsubishi UFJ, nor X provided a comment when contacted. Bank of America declined to respond. The Wall Street Journal first reported the sale earlier on Monday.
Last month, Musk announced that his artificial intelligence company, xAI, had acquired X. The deal valued the social platform at $33 billion. That development has improved market confidence and likely played a role in the successful offloading of the remaining debt.
