(Bloomberg) – Morgan Stanley increases the size of its latest offer from X holding debt Corp. of the question.
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Morgan Stanley had marketed a portion of $ 3 billion, but decided to add more to the offer after receiving high demand from investors, said people, who were not allowed to speak publicly. The agreement is expected to price on Thursday.
A representative of Morgan Stanley did not immediately provide a comment.
Seven Wall Street banks remained stuck with the debt after funding the purchase by Elon Musk of the platform, then called Twitter Inc., in 2022. Morgan Stanley orchestrated a financing package of nearly $ 13 billion And directed the sales effort of the debt.
The transaction sold is now the third of a frantic period of less than a month.
The first was a sale of $ 1 billion loans to test the market, which estimated a range of 90 to 95 cents on the dollar. This was quickly followed by a sale of $ 5.5 billion in debt for 97 cents on the dollar. Banks still have a total of $ 6 billion in X debt.
Sales mark a surprising turnaround for what had long been considered an unfortunate funding for the purchase of Musk. Banks generally sell debts on the market immediately after such a takeover, but investors fell to the idea, concerned about the price that Musk had paid and that his modifications made to content moderation policies would distance advertisers. This left the debt hung on the banks’ books for more than two years.
But the narrow links of the billionaire with President Donald Trump, including an advisory role, quickly changed perceptions on the prospects of X. Investors expect that the position of Musk in the administration helps his commercial interests, Even if its aggressive efforts to reduce government costs have sown upheavals in Washington.
In his marketing efforts, Morgan Stanley also shared new details on the revenues and adjusted profits of X, suggesting that his finances stabilized after a long crisis.
– With the help of Aaron Weinman and Sridhar Natarajan.
(Add details on planned size and pricing, equipment on the history of banks holding x debt.)
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