X's $13B Acquisition Debt Reduced with $4.74B Loan Sale
Banks led by Morgan Stanley have sold $4.74B of secured loans supporting Elon Musk's X (formerly Twitter) acquisition. The loans, maturing in October 2029, yield 9.5% and priced at par.
This sale follows an earlier $5.5B term loan sale. With these transactions, banks have now offloaded almost all of the $13B acquisition debt.
The remaining $1.3B of unsecured loans may be sold later, though the timing is uncertain.
The latest loan tranche is a rare fixed-rate deal, attracting large fund managers anticipating X's improved revenue under Trump and Musk's influence.
Despite banks typically selling loans post-acquisition, X's debt was held for two years.
The first loan tranche sold at a premium, potentially aiding the latest sale. Investors also gained exposure to X's stake in AI startup xAI.
Societe Generale declined comment, while other banks did not respond.