Banks Sell $5.5 Billion Twitter Debt amid Rising Musk Confidence
Key Points:
* Banks sold $5.5 billion in debt tied to Elon Musk's Twitter buyout.
* Demand for the debt exceeded expectations, boosting pricing.
* Investors purchased loans at a premium of $0.02 over initial estimates.
* The sale signals Wall Street's increased confidence in Musk and Twitter.
Additional Details:
* Morgan Stanley and Bank of America led the group of banks selling the debt.
* The debt was originally priced at $0.95 on the dollar but was sold at $0.97.
* Banks have held the debt since Musk's $44 billion acquisition of Twitter in October 2022.
* The value of the loans declined as Twitter struggled.
* Holding the debt has dragged on banks' regulatory capital requirements.
* Musk's role in Washington and the return of advertisers to Twitter have boosted investor confidence.
* Banks are offering incentives to offload the remaining $6 billion in junior debt.
* Musk is expected to address JPMorgan Chase executives this week to discuss potential cost savings at Twitter.
* Musk has been restructuring government agencies and accessing the Treasury Department's payment system.
* Treasury Secretary Scott Bessent has assured that the payment system remains operational.
* Dimon, CEO of JPMorgan Chase, has expressed a willingness to assist Musk and Twitter.
* The sale of the debt represents a favorable outcome for banks and a vote of confidence in Twitter's future under Musk's leadership.