Morgan Stanley is finalizing the sale of other US $ 3 billion of X Holdings Corp debt., progressing even more in an effort of years to get rid of the loans that supported the tumultuous purchase of the social networks platform by Elon Musk.
The bank plans to sell the guaranteed senior term loan, which has a fixed rate of 9.5%, No discount on the nominal value after receiving more than enough demand from investors, According to people with knowledge of the matter, they asked not to be identified since the terms of the agreement are private.
This is the third operation in a frantic period of less than a month, during which mOrgan Stanley led a group of seven Wall Street banks to sell a total of US $ 6,500 million in debt x. This sale would increase that amount to US $ 9,500 million, leaving banks with only US $ 3,000 million in their books.
Sales mark surprising change for what had long been seen as unfortunate financing of Musk’s acquisition in 2022 of the platform previously known as Twitter Inc. Banks often sell debt in the market immediately after a purchase of this Type, but Investors resisted the idea, concerned about the price that Musk had paid and that their changes in content moderation policies would move the advertisers away.
But the close links of the billionaire with President Donald Trump, including an advisor role, quickly changed perceptions about the perspectives of X. LYou expect Musk’s position in the administration to help their commercial interestseven when their aggressive government reduction efforts have sown agitation in Washington.
Morgan Stanley first tested the appetite of investors with a sale of loans of US $ 1 billion whose price ranged between 90 and 95 cents per dollar. It quickly continued with a sale that was initially supposed to be US $ 3,000 million, but He received a strong demand after a great marketing campaign that included a meeting with the main executives of X. The bank increased the size of 5.5 billion dollars and could sell it for 97 cents per dollar.
Financial Times previously reported some details of the sale.
Morgan Stanley advised Musk in the purchase, directed financing and sales and also possessed most of X’s debt. Other shareholders include Bank of America Corp., Barclays PLC, Mitsubishi UFJ Financial Group Inc., BNP Paribas SA, Mizuho Financial Group Inc. and Societe Generalee SA.
