Business Standard

Elon Musk's Twitter bankers face potential hit on the riskiest debt

The lenders forged a deal based on a maximum interest rate of 11.75 per cent for the $3 billion unsecured portion of the financing package

Elon Musk. (Photo: Bloomberg)
Premium

Elon Musk. (Photo: Bloomberg)

Bloomberg
A group of banks led by Morgan Stanley that agreed to provide Elon Musk with $13 billion of debt financing for his acquisition of Twitter would risk taking a hit if they had to offload the financing to investors in the current risk-off market climate. 

The lenders forged a deal based on a maximum interest rate of 11.75 per cent for the $3 billion unsecured portion of the financing package, which is expected to be replaced by a bond with ratings in the CCC tier, according to a person with knowledge of the matter. Yet the average yield on similarly rated

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: May 28 2022 | 1:48 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com