Wall Street Banks Finalize Sale of Elon Musk’s X Acquisition Debt

Wall Street Banks Finalize Sale of Elon Musk’s X Acquisition Debt

A consortium of major banks, including Morgan Stanley, Bank of America, Barclays, and Mitsubishi UFJ, has completed the sale of the final portion of the debt linked to Elon Musk’s $44 billion acquisition of the social media platform formerly known as Twitter, now rebranded as X, according to a source familiar with the transaction.

The final tranche involved $1.2 billion in loans, sold at 98 cents on the dollar with a 9.5% yield, the source revealed. This marks the last piece of the $13 billion debt package that banks have held since Musk's high-profile buyout in 2022.

Musk’s improving relationship with former U.S. President Donald Trump and the revenue outlook for X played a significant role in helping banks offload nearly all of the debt that had remained on their books for almost two years.

The financing for the acquisition originally included a mix of loans: a $6.5 billion secured term loan, a $500 million revolving credit facility, $3 billion in unsecured debt, and $3 billion in secured loans. In total, seven lenders participated in the deal led by Morgan Stanley.

Earlier this month, it was reported that Morgan Stanley had offered the remaining $1.23 billion of the debt as a fixed-rate loan priced between 97.5 and 98 cents on the dollar, also yielding 9.5%.

While Morgan Stanley, Barclays, Mitsubishi UFJ, and X did not respond to requests for comment, Bank of America declined to provide a statement.

This update follows a report from The Wall Street Journal and comes shortly after Musk announced that his AI company, xAI, had acquired X in a deal valuing the platform at $33 billion.