Investing.com -- Leading banks, including Morgan Stanley (NYSE:MS), Bank of America (NYSE:BAC), Barclays (LON:BARC), Mitsubishi UFJ (NYSE:MUFG), BNP Paribas (OTC:BNPQY), Mizuho (NYSE:MFG), and Societe Generale (OTC:SCGLY), have sold a substantial portion of the $13 billion debt that backed Elon Musk's acquisition of Twitter, now known as X, in 2022, according to Reuters, citing a knowledgeable source.
On Thursday, these banks completed the secondary sale of $4.74 billion worth of secured loans set to mature in October 2029. The loans, which paid a fixed rate yield of 9.5%, were priced at par or 100 cents to the dollar, the source disclosed. This loan sale was an increase from the initial $2.97 billion.
With this recent sale, the banks have almost entirely offloaded the $13 billion debt they have carried on their books for almost two years.
The X acquisition in 2022 was financed by a combination of a $6.5 billion secured term loan, a $500 million revolving credit facility, a $3 billion unsecured loan, and $3 billion of secured loans.
The timeline for the sale of the remaining $1.3 billion in unsecured loans still held by the banks remains uncertain, the source added.
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