Banks Sell Final $1.2B Debt Linked to Elon Musk’s $44B Twitter Buyout

A group of major banks, including Morgan Stanley, Bank of America, Barclays, and Mitsubishi UFJ (NYSE: MUFG), has successfully sold the final piece of debt tied to Elon Musk’s $44 billion acquisition of Twitter, now rebranded as X, according to a Reuters source.

The banks sold $1.2 billion in loans at 98 cents on the dollar, offering investors a 9.5% yield. This move marks the near-complete offloading of the $13 billion in financing that had burdened the banks’ balance sheets for nearly two years. The sale comes amid optimism surrounding Musk’s ties with U.S. President Donald Trump and improved revenue prospects for X.

Musk’s original financing package included a $6.5 billion secured term loan, a $500 million revolving credit facility, a $3 billion unsecured loan, and an additional $3 billion in secured loans. Morgan Stanley, alongside six other lenders, played a key role in the 2022 buyout deal.

Earlier this month, Reuters reported that Morgan Stanley was marketing the final $1.23 billion of X-related debt as a fixed-rate loan with a 9.5% interest rate and a slight discount of 97.5 to 98 cents on the dollar.

Neither Morgan Stanley, Barclays, Mitsubishi UFJ, nor X immediately responded to Reuters’ requests for comment. Bank of America declined to comment. The Wall Street Journal first reported on the transaction earlier Monday.

The development follows Musk’s announcement last month that his AI company, xAI, had acquired X in a deal valuing the platform at $33 billion, further reshaping the billionaire’s expanding tech empire.