Elon Musk’s Twitter Takeover Debt to Be Held by Banks Amid Turbulent Markets
- Date: 21-Oct-2022
- Source: The Wall Street Journal
- Sector:Financial Services
- Country:Jordan
Elon Musk’s Twitter Takeover Debt to Be Held by Banks Amid Turbulent Markets
Twitter will become a private company if Elon Musk’s $44 billion takeover bid is approved. The move would allow Musk to make changes to the site. WSJ’s Dan Gallagher explains Musk’s proposed changes and the challenges he might face enacting them. Illustration: Jordan KranseBanks that committed to help finance Elon Musk’s takeover of Twitter Inc. plan to hold all $13 billion of debt backing the deal rather than syndicate it out, according to people familiar with the matter, in another blow to a market that serves as a crucial source of corporate funding.
The banks decided to park the debt on their balance sheets to avoid selling it at a loss to bond and loan fund managers, who have grown increasingly skittish amid rising market turmoil, the people said.