Elon Musk's X Debt Drama Comes to a Close

In a significant financial maneuver, major banks including Morgan Stanley, Bank of America, Barclays, and Mitsubishi UFJ have successfully sold the last remaining chunk of debt associated with Elon Musk's monumental $44 billion acquisition of the social media giant Twitter, now rebranded as X. According to a trusted source who spoke with Reuters, these loans, amounting to $1.2 billion, were sold at a rate of 98 cents on the dollar, yielding a robust 9.5% interest.

Banks Breathe Easy as Debt is Cleared Up

The offloading of this debt has been facilitated by Musk's prominent ties with former U.S. President Donald Trump and the optimistic outlook surrounding X's revenue prospects. This sale marks a crucial turning point, enabling these banks to shed almost all of the $13 billion in debt they had been holding for nearly two years.

A Closer Look at the Financing Behind the Deal

To finance the acquisition, Musk leveraged a complex financing structure that included a $6.5 billion secured term loan, a $500 million revolving credit facility, a $3 billion unsecured loan, and additional secured loans totaling $3 billion. This ambitious deal saw Morgan Stanley and a consortium of six other lenders pouring a staggering $13 billion into Musk’s buyout effort.

What’s Next for Musk and X?

Despite multiple attempts, representatives from the involved banks, including Morgan Stanley and Barclays, have not responded to inquiries from Reuters. Meanwhile, those looking for updates on Musk's ventures won't have to wait long. Recently, Musk revealed that his AI project, xAI, acquired X, valuing the platform at an astonishing $33 billion.

Stay Tuned for More High-Stakes Drama!

As the dust settles on this financial saga, all eyes will continue to be on Musk and X as they navigate this new chapter. Will the social media platform thrive under Musk's direction? Only time will tell, but one thing is for sure—investors and fans alike will want to keep a close watch on the next developments!