Adverts
The banks that financed Elon Musk's (NYSE:TWTR) $44 billion purchase of Twitter plan to preserve $13 billion in debt backing the deal, instead of distributing it.
The banks are credited with choosing to place the debt on their balance sheets instead of selling it at a loss, according to a WSJ document, which noted that the individuals agreed. Banks supporting the transaction on Twitter include Morgan Stanley (MS), U.S. Bank (BAC), and Barclays (BCS).
The deal with Twitter is expected to be reached next Friday, and if that happens, the banks expect to promote some of Twitter's debt within the next 12 months, according to the report.
The WSJ document comes after several media outlets previously mentioned this month that banks may also lose around US$$ 500 million in their effort to finance Elon Musk's (TWTR) purchase of Twitter, as the debt market has taken hold in recent months. The banks initially agreed to finance the purchase despite the fact that they could not promote the debt, and now their buyers, who would not, would be looking to buy the debt in current markets.
The remaining banks for the month were reportedly on the hook for the sale of Citrix $ systems worth $16.5 billion to Elliott and Vista equity, where the banks that underwrote debt backing the deal are jointly for $$ $500 million in losses when the debt was auctioned off at a discount auction.
On Wednesday, Tesla (TSLA) CEO Musk said that he and other traders are “definitely overpaying” for Twitter (TWTR).
