Twitter makes first interest payment on Musk buyout debt -sources
Reuters
Published Jan 31, 2023 16:07
Updated Jan 31, 2023 16:19
NEW YORK (Reuters) - Twitter Inc (NYSE:TWTR) 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 to a group of banks last week, one of the sources said, confirming an earlier Bloomberg story.
The financing was led by Morgan Stanley (NYSE:MS), Bank of America Corp (NYSE:BAC) and Barclays (LON:BARC) PLC .
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 in financing last year for Tesla (NASDAQ:TSLA) CEO Musk's acquisition of Twitter Inc 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 in new fundraising to help repay some of the $13 billion in debt tacked onto Twitter Inc for his buyout of the company, citing people familiar with the matter.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.