Last Loan Tranche Under Musk’s Acquisition Moves at Discount

A consortium led by Morgan Stanley, Bank of America, Barclays, and Mitsubishi UFJ successfully sold the final $1.2 billion of loans tied to Elon Musk’s $44 billion acquisition of Twitter—now X—at a discount of 98 cents on the dollar, yielding 9.5%. This sale effectively clears almost all of the $13 billion debt held by these banks since the deal closed.

Deal Structure Overview

Musk’s acquisition was financed through a $6.5 billion secured term loan, a $500 million revolving credit facility, $3 billion in unsecured debt, and another $3 billion of secured debt. Investors can stay updated on these debt instruments’ details through official SEC filings, providing valuable insights on amendments and transfers.

Market Sentiment and Yield Dynamics

Banks capitalized on improved sentiment surrounding X’s revenue outlook and Musk’s political connections for this sale. Selling the debt at a discount increases the effective borrowing cost but allows lenders to reinvest capital elsewhere. Yields around 9.5% reflect the credit risk and the terms expected for high-yield offerings.

Implications for Lenders and Musk’s Financing Future

This successful sale enables participating banks to reduce their loan-loss reserves while providing Musk with options for refinancing. The future of debt offerings tied to Musk’s ventures—including xAI—will likely reference these market benchmarks.