Morgan Stanley prepares for $3 billion debt sale of Elon Musk’s social-media platform

Investing.com — Wall Street banks, including Morgan Stanley (NYSE:), Bank of America, and Barclays (LON:), are gearing up to sell a substantial portion of debt holdings in X, the social-media platform controlled by Elon Musk, according to a report from the Wall Street Journal. The bankers have initiated discussions with potential investors ahead of a planned debt sale, which could reach up to $3 billion next week.

These banks had previously lent Musk the funds to finalize his 2022 buyout of the company, previously known as Twitter. The intended sale price for the senior debt is between 90-95 cents on the dollar, with the banks planning to retain more junior holdings. The banks have recently sold about $1 billion of this debt in a private transaction to several investors.

The proposed sale represents a significant step towards alleviating the financial burden that has plagued these banks since they agreed to finance Musk’s $44 billion acquisition of the social-media company. To facilitate the deal, the banks had lent approximately $13 billion.

In order to successfully sell the debt, the bankers will need to assure investors that the company’s financial situation has stabilized. Musk’s increasing influence and his alliance with President Trump appear to have positively impacted the narrative around X’s financial prospects.

There has been growing interest from investors to purchase the company’s debt, as they believe that the company’s financials are showing signs of improvement, the report said, citing a person familiar with the matter.

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