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The banks of Wall Street have tried with the debt of the takeover of Elon Musk at 44 billion dollars of Twitter sold large pieces of the loan package to investors on Wednesday, allowing a certain number of lenders to leave the ‘One of the most difficult acquisition financiers of recent years.
Banks were able to sell $ 5.5 billion in long -term loans, following a sale of approximately $ 1 billion in the same debt last month, helped by booming interest in assets, according to assets, according to assets, according to informed people. The debt sold on Wednesday was discharged with a small discount, selling 97 cents on the dollar.
The transaction was a central moment for the banksWho had to finance Musk’s takeover in 2022 themselves after his property of the company, now renamed X, and a broader enthusiasm of market volatility for debt.
“I don’t want to recover it, the banks did not want to be in this position,” said a person involved in the agreement.
Banks, led by Morgan StanleyBank of America and Barclays, are now left to $ 6 billion in debt linked to the acquisition, which is considered even more risky than the loans they sold last week. MUFG, BNP Paribas, Mizuho and General Society had also participated in the agreement.
Bofa, Morgan Stanley, Barclays, BNP Paribas and Socgen refused to comment, while the other two banks did not respond to requests for comments.
Debt sales, including loans sold in January, attracted a large list of high -level groups, including Citadel, Apollo Global Management, Pimco and Capital Diameter. The groups refused to comment.
The appetite of investors in Twitter debt has been reinforced by Musk Relationship with American President Donald Trump as well as the return of some of the advertisers who had previously withdrew from the platform, said familiar people with the agreement.
This turned out to be a saving pardon for banks that intensified to finance the transaction, since certain hedge funds had offered Morgan Stanley and others at only 60 cents on the dollar in 2023 to remove the debt .
An official of the money who sent the agreement added that it was the right time for the banks to sell, pointing towards “Elon’s Cache. He is an FOP, a friend of the president. »»
Investors were also courted by the company’s participation in the Musk artificial intelligence company, XAI, that Financial Times said last year was estimated at $ 50 billion. This helped appease concerns about X -clean assessment and the company’s ability to respond to its debts.
Morgan Stanley, Musk’s main banker, highlighted the agreement at a timely time – since debt investors have been largely hungry for new buyouts to help finance.
The bank limited the parties which could access the financial information of X or join a meeting with the main managers, including the CEO Linda Yaccarino, to those who were ready to write considerable checks. For some investors, this has led a sense of urgency.
The debt has an interest rate of more than 6 percentage points on the floating rate reference, more than 11%, according to an informed person on this subject. With the delivery, the yield exceeded 12%, according to the Levfin Insights credit supervision service.
It was a huge draw for investors, given that the debt yields of risky companies have given their lowest level since 2022, according to data from ice data services.
Additional Harriet Agnew report in London
