Twitter pays interest on Elon Musk’s $12.5 billion debt
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Twitter has made the second interest payment on Elon Musk’s $12.5 billion debt. Interest accrued on a loan that Musk took out to buy the social network. About it informs Bloomberg.
In fact, the loan payment was made by Musk’s front company X Corp. It was created as the parent company of Twitter. Over X Corp. there is another Musk company – X Holdings Corp. They were all set up to receive a $13 billion loan to buy Twitter.
$12.5 billion was received by seven banks led by Morgan Stanley Corporation. Banks tried to sell debt to outside investors so as not to go bankrupt, according to Bloomberg interlocutors familiar with the case.
A spokesman for Morgan Stanley declined to comment to Bloomberg, and Twitter did not respond to a request – the public relations department was disbanded with the arrival of Musk. The first interest payment took place at the end of January 2023, when Twitter paid out approximately $300 million.
Elon Musk acquired Twitter at the end of October 2022 for $44 billion. He dissolved the board of directors, took over the company and began to change the social network. In particular, the businessman called for an amnesty for blocked accounts, and also introduced paid verification on the social network.
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