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Wall Street banks are getting ready to sell up to $3 billion of debt holdings in X, the social-media platform controlled by Elon Musk , two sources with knowledge of the matter said on Friday. Morgan Stanley bankers have reached out to investors ahead of a planned sale next week, the people added. The bank and others, such as Bank of America and Barclays , had lent to Musk to complete his $44 billion buyout of X, formerly known as Twitter, in 2022.
Banks expect to get 90 to 95 cents on the dollar, according to the Wall Street Journal, which earlier reported the preparations for the sale. Morgan Stanley, Bank of America, Barclays, X and Elon Musk did not immediately respond to requests for additional comment. Stock Trading Maximise Returns by Investing in the Right Companies By - The Economic Times, Get Certified By India's Top Business News Brand View Program Stock Trading Market 104: Options Trading: Kickstart Your F&O Adventure By - Saketh R, Founder- QuickAlpha, Full Time Options Trader View Program Stock Trading Technical Analysis for Everyone - Technical Analysis Course By - Abhijit Paul, Technical Research Head, Fund Manager- ICICI Securities View Program Stock Trading Stock Markets Made Easy By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Renko Chart Patterns Made Easy By - Kaushik Akiwatkar, Derivative Trader and Investor View Program Stock Trading Market 101: An Insight into Trendlines and Momentum By - Rohit Srivastava, Founder- Indiacharts.
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Musk's sweeping changes to the platform, including laying off many people who worked to moderate content, and one of his posts on X, scared away advertisers and hit revenues. That reduced the value of the debt, as the risk of default increased. Reuters reported in November that Musk's political ascendancy and proximity to U.
S. President Donald Trump had banks pondering over the improved prospects of the social media platform, helping them in selling the debt without having to take a massive loss on the deal. Attempts to sell the debt in late 2022 attracted bids which would have seen banks taking as much as a 20% loss on the face value of the debt, sources at the time said.
Other banks in the consortium that helped finance the deal include Mitsubishi UFJ BNP Paribas, Mizuho , and Societe Generale. (You can now subscribe to our ETMarkets WhatsApp channel ).
