Morgan Stanley-Led Banks Increase X Debt Sale on Strong Demand
Amid higher-than-anticipated investor demand, a consortium of banks led by Morgan Stanley will boost the sale of loans tied to Elon Musk's social media platform, X (formerly Twitter), reports Bloomberg News.
Initially aiming to sell $3 billion in loans, the banks now intend to offer up to $5.5 billion worth of debt from their portfolios, according to Bloomberg sources.
Musk's increased political influence and connections with former President Donald Trump have reportedly improved X's prospects, facilitating debt sales without significant losses.
Morgan Stanley, along with other banks like Bank of America and Barclays, provided financing to Musk in 2022 for his $44 billion acquisition of X. While banks typically divest such loans shortly after completing transactions, X debt proved difficult to offload.
As of this writing, Morgan Stanley has not provided a response to Reuters' request for comment.