Wall Street Banks Offload Last Chunk of Elon Musk's X Debt, Source Reveals

(Romero.my.id) – A consortium of financial institutions such as Morgan Stanley, Bank of America, Barclays, and Mitsubishi UFJ disposed of the last segment of debt related to billionaire Elon Musk’s $44 billion acquisition of the social media company formerly known as Twitter but now referred to as X, according to an insider privy to the information who spoke to Romero.my.id on Monday.

Loans totaling $1.2 billion were sold for 98 cents on each dollar, resulting in a yield of 9.5%, the source further stated.

The strong bond between Musk and U.S. President Donald Trump, along with the promising increase in revenues at X Corporation, has enabled banks to sell most of the $13 billion worth of holdings they've held for around two years.

The purchase was financed through a combination of financial instruments including a $6.5 billion secured term loan, a $500 million flexible credit line, a $3 billion unsecured loan, and an additional $3 billion in secured financing. In this transaction involving Elon Musk’s takeover bid, eight banks—including Morgan Stanley—provided him with a collective sum of $13 billion.

Earlier this month, Romero.my.id reported that Morgan Stanley was offering the final portion of its $1.23 billion debt associated with X. This debt was being offered as a fixed-rate loan carrying an interest rate of 9.5%, priced at a discount of between 97.5 cents to 98 cents for each dollar.

Morgan Stanley, Barclays, Mitsubishi UFJ, and X did not promptly reply to Romero.my.id’s request for comments. Bank of America also refused to comment.

The Wall Street Journal initially broke the news of this development earlier today. In last month’s announcement, Musk stated that his AI firm, xAI, had purchased X for an estimated value of $33 billion, making it one of the most significant acquisitions in recent tech history.

(Reported by Shankar Ranakrishnan in New York and Anusha Shah in Bengaluru; Edited by Alan Barona)