Twitter Makes First Interest Payment to Banks on Elon Musk’s $13 Billion Buyout Loan

The financing was led by Morgan Stanley, Bank of America, and Barclays, which provided $13 billion for Twitter takeover.

Twitter Makes First Interest Payment to Banks on Elon Musk’s $13 Billion Buyout Loan

Photo Credit: Reuters

Elon Musk's Twitter takeover financing was led by Morgan Stanley, Bank of America, Barclays

Highlights
  • Twitter paid about $300 million to a group of banks last week
  • Musk's team has been exploring raising $3 billion to repay debt
  • Twitter incurred a $13 billion debt from banks for Elon Musk's buyout
Advertisement

Twitter has made its first interest payment on a loan that banks provided to help finance billionaire Elon Musk's purchase of the social media company last year, according to two people familiar with the matter.

Twitter paid about $300 million (roughly Rs. 2,500 crore) to a group of banks last week, one of the sources said, confirming an earlier Bloomberg story.

The financing was led by Morgan Stanley, Bank of America, and Barclays .

The banks declined to comment, while Twitter and Musk did not immediately respond to Reuters requests for comment.

The sources did not want to identified because the details of the payment are not public.

The banks providing $13 billion (roughly Rs. 1,10,000 crore) in financing last year for Tesla CEO Musk's acquisition of Twitter abandoned plans to sell the debt to investors because of uncertainty around the social media company's fortunes and losses, Reuters reported citing people familiar with the matter.

Morgan Stanley's Chief Financial Officer Sharon Yeshaya told Reuters this month the bank's mark-to-market losses on corporate loans include debt to Twitter.

Last week, the Wall Street Journal reported that Musk's team has been exploring using as much as $3 billion (roughly Rs. 24,600 crore) in new fundraising to help repay some of the $13 billion in debt tacked onto Twitter for his buyout of the company, citing people familiar with the matter.

© Thomson Reuters 2023


Buying an affordable 5G smartphone today usually means you will end up paying a "5G tax". What does that mean for those looking to get access to 5G networks as soon as they launch? Find out on this week's episode. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

US, India's ICET Partnership to Focus on Semiconductors, AI and More to Help Compete Against China
Netflix Explains How It Will Prevent Account Password Sharing
Facebook Gadgets360 Twitter Share Tweet Snapchat LinkedIn Reddit Comment google-newsGoogle News

Advertisement

Follow Us
© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »