Elon Musk is looking to finance Twitter acquisition without loans backed by Tesla shares as price falls

Trending 2 months ago 30

Elon Musk is reportedly looking to unafraid much equity for the acquisition of Twitter successful bid to proceed without billions of dollars worthy of loans backmost by Tesla shares. It comes arsenic Tesla’s stock terms has fallen to significantly.

Last month, Twitter’s committee officially accepted Elon Musk’s acquisition offer. It inactive needs to spell to a shareholder’s ballot and immoderate details are inactive being figured retired but successful the meantime, Musk has proven that helium has the backing acceptable for the transaction.

However, it looks similar helium mightiness beryllium changing things up a bit.

Ahead of the connection being accepted, Musk showed that helium managed to secure $25.5 billion of afloat committed indebtedness and borderline indebtedness financing, astir of which is backed by his involvement successful Tesla, and helium is going to supply an additional $21.0 cardinal in equity himself, with wealth from erstwhile income of Tesla shares.

Over the past fewer weeks, helium revealed respective partners proving implicit $8 cardinal successful equity, including Tesla committee subordinate and Oracle laminitis Larry Ellison providing $1 billion. With the caller funding, Musk reduced the fig of loans backed by his Tesla shares to $6.25 billion.

Now, Musk is seemingly looking to rise capable superior done different investors to debar Tesla-backed loans wholly (Bloomberg):

Elon Musk is successful talks to rise capable equity and preferred financing for his projected buyout of Twitter Inc. to destruct the request for immoderate borderline indebtedness linked to his Tesla Inc. shares, according to radical with cognition of the matter.

The billionaire’s advisers, led by Morgan Stanley, person begun soliciting involvement from imaginable investors for arsenic overmuch arsenic $6 cardinal successful preferred equity financing, the radical said, asking not to beryllium named discussing a backstage transaction.

The moves travel aft Tesla’s banal crashed to levels not seen since past summer:

Tesla’s banal is going down amidst a broader marketplace correction, and it is atrocious timing for Musk’s acquisition of Twitter.

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