News and Analysis
X debt sale highlights scorching state of the loan market
- Dan Milka
- +David Brooke
- + 1 more
•2 min read
The loan market is so strong now, there might even be buyers for X’s debt.
Banks led by Morgan Stanley are taking advantage of favorable conditions in leveraged credit markets to try and finally offload some of the debt tied to Elon Musk’s 2022 buyout of Twitter/X, according to market participants.
The debt is being shown to investors in the 90 cents on the dollar range, according to 9fin sources, a sharp improvement on the 60 cents level where the debt was being marked in late 2022.
The Wall Street Journal first reported the sale preparations on 24 January, saying the banks were looking to sell up to $3bn of debt at 90 to 95 cents on the dollar.
And while there’s generally heavy demand for leveraged loans and a substantial lack of new supply lately, interest in the X buyout debt may be further supported by a claim on Musk’s artificial intelligence start-up xAI Corp, according to a Bloomberg report.
Morgan Stanley declined to comment.
