Morgan Stanley prepares for $3 billion debt sale of Elon Musk’s social-media platform – WSJ

Investing.com — Wall Avenue banks, together with Morgan Stanley (NYSE:MS), Financial institution of America, and Barclays (LON:BARC), are gearing as much as promote a considerable portion of debt holdings in X, the social-media platform managed by Elon Musk, in keeping with a report from the Wall Avenue Journal. The bankers have initiated discussions with potential buyers forward of a deliberate debt sale, which might attain as much as $3 billion subsequent week.

These banks had beforehand lent Musk the funds to finalize his 2022 buyout of the corporate, beforehand referred to as Twitter. The meant sale value for the senior debt is between 90-95 cents on the greenback, with the banks planning to retain extra junior holdings. The banks have just lately bought about $1 billion of this debt in a personal transaction to a number of buyers.

The proposed sale represents a major step in direction of assuaging the monetary burden that has plagued these banks since they agreed to finance Musk’s $44 billion acquisition of the social-media firm. To facilitate the deal, the banks had lent roughly $13 billion.

To be able to efficiently promote the debt, the bankers might want to guarantee buyers that the corporate’s monetary scenario has stabilized. Musk’s rising affect and his alliance with President Trump seem to have positively impacted the narrative round X’s monetary prospects.

There was rising curiosity from buyers to buy the corporate’s debt, as they imagine that the corporate’s financials are exhibiting indicators of enchancment, the report mentioned, citing an individual acquainted with the matter.

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