Morgan Stanley markets $5 billion debt for Elon Musk's xAI, attracting investors.

From Financial Modeling Prep: 2025-06-10 08:45:00

Morgan Stanley is marketing a $5 billion debt package for Elon Musk’s xAI, with a floating-rate Term Loan B at 97 cents on the dollar and a mix of fixed-rate bonds and loans yielding up to 12%.

This deal is offered on a “best efforts” basis, reflecting more cautious lender risk appetite after the X/Twitter deal. Rising friction between Musk and Trump could impact xAI’s federal contracts and regulatory goodwill.

Investors are still attracted to xAI’s high-yield structure and Musk’s track record, with a planned $20 billion equity raise at a valuation between $120 billion and $200 billion. The market remains bullish on generative AI infrastructure plays.

To track how Musk-linked public companies are responding, use the Up/Down Grades by Company API for real-time rating and valuation changes on firms like Tesla and Morgan Stanley.



Read more at Financial Modeling Prep:: Morgan Stanley Markets $5 Billion Debt for Elon Mu…