Oct. 14, 2023
Elon Musk's $13 billion debt bomb versus Wall Street. The state of play with the Banks. Talking with William D. Cohan of PUCK News.
X/Twitter owes $13 billion to a syndicate of 7 banks who are eager to sell the loan to private investors and get it off their books. Will Musk buy the debt or will distressed debt funds buy it ?
Elon Musk's X/Twitter owes a syndicate of 7 banks $13 billion, $10 billion of which is secured by Twitter assets and $3 billion is unsecured. All $13 billion is non-recourse debt. In other words, Musk does not guarantee it. All quarterly interest payments have been paid, even as X's EBITDA has plummeted. The Banks are eager to sell the debt but who will buy it and at what price ?
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