Banks to Sell $3 Billion in Debt from Elon Musk's X Acquisition at a Discount

Morgan Stanley and other lenders aim to reduce exposure from Musk's $44 billion purchase of X, formerly Twitter, as financial struggles persist.

Morgan Stanley is leading efforts to sell $3 billion in senior debt linked to Elon Musk's 2022 acquisition of X, offering it at 90-95 cents on the dollar.
The banks still hold $13 billion in debt from the deal, with plans to retain riskier junior debt for now due to ongoing financial volatility.
X, rebranded from Twitter, faces stagnant user growth, declining ad revenue, and over $1 billion in annual interest payments, according to a leaked email from Musk.
Advertisers have been wary of returning to the platform, citing concerns over content moderation and Musk's controversial actions and statements.
Despite financial challenges, banks see potential investor interest tied to Musk's political prominence and a recovering debt market.