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Wall Street banks have been besieged by Long of Elon Musk in the amount of $ 44 billion on Twitter they sold large pieces of loan package on Wednesday, allowing borrings to go to one of the most serious financial resources to acquire in recent years.
Banks could sell $ 5.5 billion loans, after selling about $ 1 billion in the same debt last week, helped with the flourishing of the interests of investors in the property, according to the people who met in the matter. The debt that is sold on Wednesday is full of only a small discount, selling 97 cents on the dollar.
The transaction was a key moment for shoreswho had to finance Mushk’s takeover in 2022 after his business ownership, which was now renamed the X and wider market volatility dimmed the enthusiasm for debt.
Banks, led by Morgan Stanley, Bank of America and Barclays, are now left with an additional $ 6 billion in debt related to acquisition, which is considered even more risky than the loaning of last week. Mufg, BNP Paribas, Mizuho and Société Générale also participated in the Agreement.
Bofa, Morgan Stanley, Barclays, BNP Paribas and Socgen refused to comment, until the two other banks respond to the commentary requests.
The sale of debt in the last two weeks has attracted a wide list of high groups, including Citadel, Apollo Global Management, Pimco and Capital of diameter. The groups refused to comment.
The appetite of investors in the debt on Twitter strengthened Musk’s relationship with US President Donald Trump, as well as the return of some of the advertisers who had previously withdrew from the site, people said to be introduced to the agreement. This turned out to be a rescue grace for banks that intensified for the financing of transaction, given that some Hedge funds offered Morgan Stanley and others only 60 cents on the dollar 2023 to take off their hands.
One money manager who concluded the contract added that it was the right time for the banks to sell, pointing to “Elon’s cache. He is Fop, a friend of the president.”
The transaction comes because Musk struggled to restore X financial health after advertisers left the platform for concern about their approach to moderation and risk of brand safety.
However, this year, after Musk was increasingly consolidating power in Trump’s administration. Amazon has increased marketing consumption in January, showing sensors data after they have previously reduced their consumption when advertisers have withdrawn.
