Dimitrios Kambouris
Elon Musk’s banks are testing new loans backed by Tesla (NASDAQ: TSLA) stock to replace the high-interest debt it took on for $44B to acquire Twitter (TWTR), Bloomberg reports.
It would be a change to reduce $13B in debt that adds about $1.2B to the media company’s annual costs.
This pile of debt has been hanging around the necks of banks that mainly have to use their money, after changes in the credit markets made it difficult to consolidate $13B. Banks are not expected to try to offload any loans to investors until the new year.
For now, Bloomberg says, the focus is on how to convert $3B in unsecured debt at an eye-watering 11.75% interest rate in particular.
$13B in Twitter’s total debt is concentrated on the company Twitter (TWTR), but any debts against Tesla can be taken by Musk personally – although it may make sense for the billionaire, since he has a lot of money. money built in Twitter equity.
