Volatility in high yield, loan markets might force Morgan Stanley, Barclays, others to sell $13 billion in Twitter debt at discount Twitter will become a private company if Elon Musk’s $44 billion takeover bid is approved. The move would allow Musk to make changes to the site. WSJ’s Dan Gallagher explains Musk’s proposed changes and the challenges he might face enacting them. Illustration: Jordan KranseBanks that agreed to fund Elon Musk’s takeover of Twitter are facing the possibility of big losses now that the billionaire has shifted course and indicated a willingness to follow through with the deal, in the latest sign of trouble for debt markets that are crucial for funding takeovers.
The $44 billion deal, which Mr. Musk had been trying to walk away from, would be paid for in part with some $13 billion of debt seven banks including Morgan Stanley Bank of America and Barclays PLC agreed to provide when the takeover was sealed in April.
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