Musk’s Debt Bankers Would Avoid Steep Losses If Deal Fails

Jul 11, 2022 · But Elon Musk’s decision to back out of a $44 billion bid for Twitter Inc. may mean dodging steep losses from underwriting the debt. ... Musk’s Debt Bankers Would Avoid Steep …

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Musk’s Debt Bankers Would Avoid Steep Losses If Deal Fails

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Jul 11, 2022 · But Elon Musk’s decision to back out of a $44 billion bid for Twitter Inc. may mean dodging steep losses from underwriting the debt. ... Musk’s Debt Bankers Would Avoid Steep …

bloomberg.com

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Musk’s Debt Bankers Would Avoid Steep Losses If Deal Fails (1)

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Jul 11, 2022 · Banks are usually upset when large leveraged buyouts fall apart because of the hefty fees they generate. But Elon Musk ’s decision to back out of a $44 billion bid for Twitter …

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Elon Musk Told Lenders They Would Not Lose Money On Twitter Deal

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Dec 15, 2023 · Elon Musk privately told some of the bankers who lent him $13 billion * (€11.9 billion) to fund his leveraged buyout of Twitter that they would not lose any money on the deal, …

irishtimes.com

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Musk’s Debt Bankers Would Avoid Steep Losses If Deal Fails (1)

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Jul 11, 2022 · Banks are usually upset when large leveraged buyouts fall apart because of the hefty fees they generate. But Elon Musk’s decision to back out of a $44 billion bid for Twitter …

bloomberglaw.com

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Elon Musk's $44 Billion Twitter Purchase Ranks As Worst Deal For …

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Aug 20, 2024 · Banks moved to finance the deal partly because Musk and his backers contributed $30 billion for the Twitter acquisition as a cushion for the debt if the deal soured, the report …

morningstar.com

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Musk’s Debt Bankers Would Avoid Steep Losses If Deal Fails

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Jul 12, 2022 · If the debt yields more than 11.75%, banks eat into fees. They would incur outright losses if the rate exceeds 12.125%. At a fixed 11.75% coupon, and assuming an eight-year …

dailymaverick.co.za

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Banks Still Stuck With $13 Billion In Risky Loans From Musk’s LBO …

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Aug 20, 2024 · And X’s debt has become massively expensive: Since the last rate hike in July 2023, the interest rate on the $6.5 billion term loan has been over 10% (4.75% plus 5.33% …

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Musk Bankers Could Avoid Steep Losses - National Post (2022-07-12)

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Jul 12, 2022 · Musk bankers could avoid steep losses If deal dries up, buyout debt may be beneficial ... Credit markets have tumbled since banks first agreed to raise US$13 billion to …

nationalpost.com

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Big Banks Financing Elon Musk's Twitter Deal Face Losses: Reuters ...

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Oct 5, 2022 · The banks that lined up $12.5 billion in financing for Elon Musk's Twitter deal reportedly facing steep losses as appetite for riskier debt sours Carla Mozée 2022-10 …

businessinsider.com

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Business Maverick: Musk’s Debt Bankers Would Avoid Steep Losses …

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Jul 12, 2022 · But Elon Musk’s decision toCredit markets have tumbled since banks first agreed to raise $13-billion tothe deal in April. The riskiest piece of the debt package alone would have …

headtopics.com

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X $13 Billion Debt: Can Musk's Verbal Promises Shield Banks From …

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Dec 15, 2023 · In October 2022, Elon Musk made headlines with his astonishing $43 billion acquisition of Twitter, a move facilitated by a substantial $13 billion loan from prominent …

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Banks Financing Musk's Twitter Deal Face Hefty Losses

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Oct 5, 2022 · That came on the heels of a group of banks having to take a $700 million loss on the sale of about $4.55 billion in debt backing the leveraged buyout of business software …

thehindu.com

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Elon Musk’s Bankers Consider Tesla Margin Loans To Cut Risky …

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"Elon Musk’s bankers are considering providing the billionaire with new margin loans" ... I imagine if the stock drops to like $140~$150 a bunch of institutional holders will bail to avoid the risk of …

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FAQs about Musk’s Debt Bankers Would Avoid Steep Losses If Deal Fails Coupon?

Did Elon Musk tell bankers he won't lose money on Twitter buyout?

Photograph: Kirsty Wigglesworth/AP Elon Musk privately told some of the bankers who lent him $13 billion * (€11.9 billion) to fund his leveraged buyout of Twitter that they would not lose any money on the deal, according to five people familiar with the matter. ...

How much money will Elon Musk give a bank?

While Musk will provide much of $44 billion by selling down his stake in electric vehicle maker Tesla Inc. and by leaning on equity financing from large investors, major banks have committed to provide $12.5 billion. They include Morgan Stanley, Bank of America Corp. and Barclays Plc. ...

How much debt does Elon Musk have?

The debt is split between $6.5 billion of term loans, as well as $6bn of senior and junior bonds and a $500 million revolver. Morgan Stanley, Bank of America, Barclays, MUFG, BNP Paribas, Mizuho and Société Générale declined to comment. A spokesperson for X declined to comment. Musk did not return a request for comment. ...

Why did Elon Musk raise $13 billion?

While more than half of the $44 billion price tag came from Elon Musk, some $13 billion had to be raised from a consortium of lenders in order not to overwhelm Tesla shareholders after the entrepreneur liquidated billions of dollars in Tesla stock. ...

Why did Elon Musk make verbal guarantees to banks?

The verbal guarantees were made by Musk to banks as a way to reassure the lenders as the value of the social media site, now rebranded as X, fell sharply after he completed the acquisition last year. Photograph: Kirsty Wigglesworth/AP ...

Is Elon Musk on course to own Twitter?

Elon Musk is on course to own Twitter. Elon Musk's revival of the $44 billion buyout of Twitter comes as demand for risky debt is sinking. That means major banks financing the deal could face big losses, Reuters reported. Rising interest rates and recession fears are making investors worried about taking on debt loads. ...