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The Wall Street banks sell loans worth 3 billion USD that supports Elon Musk’s takeover of Twitter and unloaded another mammoth part of a debt business that has lingered on their balance sheets for more than two years.
Another disposal would be led to bankers for a week Morgan Stanley Successfully sold $ 5.5 billion, which were associated with the takeover that they were in 2022, after the markets were confiscated and the buyers had been saddened for the outputs.
The orders for the sale have put $ 5 billion in the shade this week and increased the trust of the banks that it could eliminate a discount that it originally offered for the debt. Morgan Stanley now aimed to evaluate the secured loans who, according to people who were informed in this matter, pay a fixed interest rate of 9.5 percent without a discount.
The sale is another coup for the seven lenders, which have been set up around $ 13 billion for the financing of the $ 44 billion acquisition of Musk. To the Bank of America, Barclays, Mazuho, Mufg, Société Générale and BNP Paribas.
The Wall Street lovers started violently in 2022 to win a role in the enemy takeover of Twitter, which is now known as X. Her hope was to finance Musk temporarily before typing big credit funds for the money.
Market trucks, including the decision of the Federal Reserve, to increase interest rates aggressively, and Musk’s own attempt Back from the transactiontriggered the alarm for potential lenders.
When the deal closed, Morgan Stanley and the six other banks had to make the capital available themselves, which disabled their ability to overwrite other loans and trigger painful losses while they wrote down the value of the loans.
But the choice of Donald Trump last year and Musk’s close relationships with the president turned the flood for the banks. The investor interest in the debts recovered and was further strengthened by X’s share of Musk’s start-up Xai from Musk.
The turnover this month and 1 billion owe debts that lenders sold to hedge funds, including the diameter capital of Capital Partners in January, eliminates the vast majority of debts that the banks have awarded for the financing of the transaction. They added about 3 billion US dollars of unsecured bridge loans of around $ 3 billion, added people.
The previously sold $ 6.5 billion of loans of USD 6.5 billion has gathered since the beginning of trade, and brokers on Wall Street often quote the debts at prices between 99 and 100 cents on the dollar. This encouraged the group of seven lenders when they considered the pricing for the secure loans this week.
Morgan Stanley rejected a statement and X did not respond to a request for comments.
