Morgan Stanley Finalizes Sale of Twitter Debt

Morgan Stanley is divesting its remaining $1.23 billion in debt connected to Elon Musk’s $44 billion acquisition of Twitter, now known as X, according to a source familiar with the transaction.

The financial institution is providing this debt as a fixed-rate loan, presenting an interest rate of 9.5% alongside a discounted price ranging from 97.5 to 98 cents per dollar, the source indicated.

This action enables the investment firm to offload the debt linked to a deal that garnered substantial attention. Since assuming control, Musk has significantly transformed the social media platform.

Alongside Morgan Stanley, other lenders like Bank of America, Barclays, and Mitsubishi UFJ also participated in Musk’s acquisition, collectively providing $13 billion in loans.

Musk’s affiliation with former U.S. President Donald Trump, combined with anticipations of X’s growing revenue, facilitated the banks in selling nearly all of the $13 billion they had held for approximately two years.

The acquisition was financed through a $6.5 billion secured term loan, a $500 million revolving credit facility, a $3 billion unsecured loan, and an additional $3 billion in secured loans.

Neither Morgan Stanley nor X have issued immediate responses to requests for comments.

The development was initially reported earlier today.

Last month, Musk announced that his AI venture, xAI, had acquired X.