Elon Musk Look At New Margin Loans Backed By Tesla December 8, 2022
Story: Mohd Javed
Elon Musk's bankers are weighing for new margin loans backed by Tesla to reduce Twitter debt.
He had taken over the microblogging platform in a $44 bn Twitter deal.
The crucial move has been taken to reduce the load of some $13B in debt that adds up to about $1.2B in annual interest costs for the social-media company.
Morgan Stanley-led bank group and Musk's advisers had been discussing to ease the $13 billion Twitter debt, reports said.
Morgan Stanley, Bank of America Corp, Barclays and Mitsubishi UFJ Financial Group had financed for the Musk’s $13 billion bid.
The banks are not expected to offload any of the Twitter debt to institutional investors until the new year, Bloomberg reported.
In October, the banks had abandoned plans to sell the debt to investors because of uncertainty around Twitter's fortunes and losses.