BILLION-DOLLAR DEAL IN DANGER? WALL STREET BANKS SHED ELON MUSK’S TWITTER DEBT LIKE A BAD HABIT!
Hold onto your hats, folks! Wall Street is on the verge of offloading a staggering $3 BILLION in loans tied to none other than ELON MUSK’S controversial Twitter takeover! The banks are scrambling to dump a monstrous chunk of debt that has been weighing them down for over TWO LONG YEARS!
Just last week, the financial bigwigs at Morgan Stanley managed to rid themselves of $5.5 BILLION of unwanted debt from the deal after the markets took a nosedive and buyers vanished like smoke! This latest sale is creating a buzz, with orders flying in and blasting past $5 BILLION! That’s right! The banks are feeling CONFIDENT enough to ditch their original discount on these loans and are gearing up to price them at a rock-solid fixed interest rate of 9.5%—no discounts in sight!
It’s a blockbuster moment for the lucky seven lenders who chipped in $13 BILLION to help Musk snag Twitter (now branded as X), including heavyweights like Bank of America, Barclays, and Société Générale! Back in 2022, these banks were chomping at the bit to finance Musk’s hostile initiative, but chaos ensued when the Federal Reserve cranked up interest rates and Musk tried to backtrack on his purchase!
When the dust settled and the deal went through, Morgan Stanley and its six cohorts found themselves forced to put up the cash themselves, locking them into a financial mess that hurt their ability to lend elsewhere—a disaster for their balance sheets!
But wait! Is the tide turning? With DONALD TRUMP back in the spotlight and Musk cozying up to him, investor interest is sizzling again! Throw in Musk’s involvement with the AI powerhouse xAI, and voila! The once-dismal prospects are looking up!
The bank’s latest moves are clearing out a massive chunk of their heavy debt, dropping another $1 BILLION of it in January. After this latest round, they’ll only be left with around $3 BILLION of junior unsecured bridge loans! Talk about a financial cleansing!
With their earlier sales pricing soaring to between 99 and 100 cents on the dollar, the seven saviors on Wall Street are brimming with bravado as they await the juicy outcome of this week’s loan pricing.
Keep your eyes peeled, because these financial titans are playing a high-stakes game, and it’s anyone’s guess where it will all land! Stay tuned for more explosive updates!
photo credit: www.ft.com
