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Wall Street Banks is approaching $ 3 billion loans that support Elon Musk's takeover of Twitter and interpret another mammoth part of the debt agreement that has persisted on their balance sheet for more than two years.
Further liquidation will come a week after the bankers lead Morgan Stanley He successfully sold a $ 5.5 billion debt bound to the takeover, with which they were saddled in 2022 after the markets were entertained and the buyers ran to the East.
Orders for sale have darkened $ 5 billion this week, which increased banks' confidence that it could eliminate the discount it originally offered to debt. Morgan Stanley has now sought the price of secure loans that pays a fixed interest rate of 9.5 % without a discount, according to people about this matter.
Sale is another coup for seven creditors who have included about $ 13 billion in funding the acquisition of Musk $ 44 billion, including Bank of America, Barclays, Mizu, MuFG, Sociéé Générale and BNP Paribas.
Wall Street creditors competed furiously in 2022 to gain a role in the enemy takeover of Twitter, now known as X. Their hope was to provide Musk temporary financing before clicking on large credit funds for money.
However, the market rupture, including the decision of the federal reserve system to aggressively raise interest rates and Musk's own attempt Back from the transactionHe caused an alarm for future creditors.
When the agreement was closed, Morgan Stanley and six other banks were forced to provide capital themselves, which prevented their ability to subscribe to additional loans and cause painful losses when they wrote the value of loans.
However, the choice of Donald Trump last year and Musk's close links to the president turned the tide for banks. Investors' interest in debt was reflected and was further supported by the share of X in Muskov Start-up XAI.
The sales of this month, as well as 1 billion debts sold by creditors in January for security funds, including capital partners with an average, clarify the vast majority of debt borrowed by banks to finance the transaction. About $ 3 billion would be held by junior unsecured bridge loans, people added.
Since the beginning of trading, $ 6.5 billion has been collected previously sold loans, with Wall Street brokers often quoted debt at prices between $ 99 and 100 cents per dollar. This encouraged a group of seven creditors when they were considering setting secure loans this week.
Morgan Stanley refused to comment and X did not answer the comment.
