Twitter Inc made its first interest payment under Elon Musk after the billionaire took the social media company private last year using about $12.5 billion in debt, according to people with knowledge of the matter.
Twitter paid off a group of seven banks led by Morgan Stanley, which got stuck in debt after being unable to sell it to outside investors.
Representatives for Morgan Stanley and Musk did not immediately respond to requests for comment.
It was expected to cost Twitter about $300 million, according to the first coupon. Bloomberg Compute and market participants are not included in the Twitter deal. The payment was due around January 27, nearly three months after the transaction closed.
Twitter’s debt consists of a $6.5 billion loan that the banks had originally hoped to sell to institutional investors and a $6 billion bridge loan, a secured and unsecured tranche split equally between the loans that the banks had raised as junk bonds. Planned to sell as.
Musk said in a Twitter Space conversation in late December that the company has about $1 billion in cash on its balance sheet. But he also openly floated the idea of bankruptcy, citing a “precipitous drop” in revenue as some advertisers fled the platform, and slashed staff since closing his $44 billion leveraged buyout in late October. gave.
The text of this story is published from a wire agency feed without any modification.
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