Musk's Bankers Mull Margin Loans To Cut Twitter Debt

Elon Musk’s bankers are considering providing the billionaire with new margin loans backed by Tesla Inc. stock to replace the high-interest debt he layered on Twitter Inc., sources with knowledge of the matter told Davide Scigliuzzo, Sonali Basak and Paula Seligson of Bloomberg News.

Photo Insert: The margin loans are one of several options the Morgan Stanley-led bank group and Musk’s advisers have discussed to soften the burden of the $13 billion of debt Twitter took on as part of Musk’s $44 billion acquisition.

The margin loans are one of several options the Morgan Stanley-led bank group and Musk’s advisers have discussed to soften the burden of the $13 billion of debt Twitter took on as part of Musk’s $44 billion acquisition.

Musk has to shell out $1.2 billion in interest costs annually for the loans he incurred in buying Twitter at a price much higher than its market value.

After making the unsolicited proposal to buy Twitter in a tweet, Musk tried to walk on the deal, forcing the social media platform to sue.

As the case was about to go to trial, Musk realized he would lose and informed the Chancery Court in Delaware that he would buy Twitter rather than pay $ 1 billion as fee for retreating on the deal aside from legal fees. Musk was scared that the evidence collected by Twitter would expose his lies and fiddling with the facts.

After acquiring Twitter, he kicked out 3,700 employees worldwide and allowed hate speech to flourish, prompting 50% of big corporations to delete Twitter from their advertising portfolio.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic