A group of banks, including Morgan Stanley, Bank of America, Barclays, and Mitsubishi UFJ, has sold the last part of the debt tied to Elon Musk’s $44 billion purchase of Twitter, which is now called X. They sold loans worth $1.2 billion at a price of 98 cents for every dollar, which gives a return of 9.5%.
Because of Musk’s close ties to former U.S. President Donald Trump and the belief that X’s earnings will go up, these banks have now been able to sell almost all of the $13 billion they had lent out for nearly two years.
To pay for the purchase, Musk used a mix of loans, including a $6.5 billion secured loan and several other loans totaling $13 billion. Morgan Stanley and six other banks took part in giving Musk this money.
Recently, Morgan Stanley was looking to sell the last piece of its debt related to X, which was worth about $1.23 billion. They offered it as a fixed-rate loan with an interest rate of 9.5% at a discounted price between 97.5 and 98 cents on the dollar.
Morgan Stanley, Barclays, Mitsubishi UFJ, and X didn’t reply to requests for comments from reporters. Bank of America also chose not to comment. The Wall Street Journal was the first to report on this news earlier today.
Last month, Musk mentioned that his AI company, xAI, has bought X, valuing the social media platform at $33 billion.
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