Morgan Stanley Unloads Bulk of Musk's Twitter Debt
Morgan Stanley, along with six other banks, has sold $4.74 billion of X Holdings Corp. debt, reducing their exposure to the financing arranged for Elon Musk's 2022 acquisition of Twitter.
The transaction marks the third debt sale for X within a month, indicating a shift in sentiment towards the company. Initially, investors were hesitant due to Musk's controversial buyout and policy changes.
However, strong investor appetite has allowed banks to unload most of their $13 billion debt exposure to X. The latest sale included $3 billion of 9.5% debt due 2029, which buyers acquired at face value.
Musk's close association with former President Donald Trump, X's improving financial performance, and its stake in xAI have all contributed to the improved investor confidence.
X's monthly revenue growth, driven by subscriptions and advertising, has reassured investors. Additionally, Musk's advisory role for Trump has raised expectations for his business interests.
With this transaction, banks have only $1.3 billion in remaining X debt to sell. The successful debt sales demonstrate a significant improvement in X's financial outlook and a shift in investor perception.