Elon Musk Reveals $46.5 Billion Financing Package for Twitter Bid
Posted on 04/21/2022
Elon Musk, a prolific user of Twitter, revealed how he is going to pay for Twitter Inc. Elon Musk lined up about US$ 25.5 billion in debt financing from Morgan Stanley and other financial institutions, according to a regulatory filing, as well as pledging to contribute an additional $21 billion of his own money through equity financing.
| Financing | Participants | AMOUNT USD |
|---|---|---|
| Debt – Term loan | Morgan Stanley, Bank of America, Barclays, MUFG, BNP Paribas, Mizuho, Societe Generale | 65,000,000 |
| Debt – Revolving facility | Morgan Stanley, Bank of America, Barclays, MUFG, BNP Paribas, Mizuho, Societe Generale | 500,000,000 |
| Debt – Secured bridge loan | Morgan Stanley, Bank of America, Barclays, MUFG, BNP Paribas, Mizuho, Societe Generale | 3,000,000,000 |
| Debt – Unsecured bridge loan | Morgan Stanley, Bank of America, Barclays, MUFG, BNP Paribas, Mizuho, Societe Generale | 3,000,000,000 |
| Debt – Margin loan | Morgan Stanley, Bank of America, Barclays, MUFG, BNP Paribas, Mizuho, Societe Generale, Credit Suisse, Citigroup, Deutsche Bank, RBC and CIBC – all secured against Musk’s ownership of Tesla stock | 12,500,000,000 |
| Equity Commitment* | Elon Musk | 21,000,000,000 |
| Total | 46,500,000,000 |
Source: SEC Filings.
SEC LINK: https://www.sec.gov/Archives/edgar/data/1418091/000110465922048128/tm2213229d1_sc13da.htm
The three entities buying Twitter include: X Holdings I, Inc., X Holdings II, Inc., and X Holdings III, Inc. (all controlled by Elon Musk).
