$12.5 billion in joint loans from banks and lenders
Filings show Musk acquired a joint $12.7 billion loan from six major international lenders. These include:
Bank of America
Barclays
BNP Paribas
Mizuho
Morgan Stanley
MUFG
Societe Generale
Looking deeper into these loans, there’s about $3 billion of both secured and unsecured bridge loans, which are short term loans that usually include relatively high interest rates. Another $6.5 billion came from a credit facility, which is structured to allow a borrower a set time to repay the loan and interest. The loans were led by Morgan Stanley which took a 27% share of the debt.
A recent report by Bloomberg stated that the banks may have a hard time selling off the debt, though reports have shown they went through with the financing paperwork anyway ahead of the deal’s finalization. The Financial Times reported that the banks are planning to hold onto that debt until next year. According to the report, the banks are waiting for Musk to come up with a legitimate business plan for Twitter.
