X Plans Purchase of Last $1.2 Billion Buyout Debt Held by Banks.
Elon Musk’s X plans to buy back the last remaining piece of debt tied to the buyout of the social network that Wall Street banks have been stuck holding for years, according to a person with knowledge of the matter.
The repurchase of the roughly $1.2 billion of second-lien debt may be financed in part by the company’s recent equity raise, said the person, who asked not to be identified discussing a private transaction. No final decision has been made, and the plans may change, the person added.
The company’s debt repurchase will allow the group of seven banks, led by Morgan Stanley, to shed the riskiest portion of loans that has sat on their balance sheets since they backed the buyout of the platform, formerly known as Twitter Inc., for $44 billion in 2022, a transaction that included debt.
In a series of transactions earlier this year, the banks offloaded the bulk of the $13 billion of debt they arranged for Musk’s acquisition of the social-media platform.
Source: Finance.Yahoo
