(Bloomberg) – Elon Musk’s X plans to buy the last remaining part of the debt related to buying social networks that Wall Street banks have stuck for years, states a person who knows about the matter.
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The redemption of about $ 1.2 billion in the second Liena debt can be partly funded by the recent increase in the company’s capital, she said that the person was asked not to identify himself to discuss a private transaction. No final decision has been made, and the plans can change, the person added.
The recurrence of the company’s debt will allow a group of seven banks led by Morgan Stanley, to shed the most risky part of the loans sitting on their balance sheets because they supported the purchase of the platform, previously known as Twitter Inc., for $ 44 billion in 2022, a transaction that included debt.
The representative for X refused to comment, while spokesman Morgan Stanley had a comment immediately.
In a series of transactions earlier this year, the banks conveyed a majority of $ 13 billion in debt that they agreed to Musk’s acquisition of social media platforms.
It was an excellent reversal of wealth, in which he helped Mushk’s relationship with President Donald Trump, X’s improved finances and his share of the XAI artificial intelligence company, which he combined to help win the investors.
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