Wall Street banks preparing to sell $3 billion in X loans, facing challenges due to platform changes.

From Investing.com: 2025-01-25 01:20:29

Wall Street banks are preparing to sell up to $3 billion of debt holdings in X, Elon Musk’s social-media platform, with Morgan Stanley leading the effort. Investors expect to receive 90 to 95 cents on the dollar. Musk denied reports of financial problems, contradicting a Journal article about his concerns.

The debt sale stems from loans provided by Morgan Stanley, Bank of America, and Barclays to facilitate Musk’s acquisition of X. However, challenges arose in offloading the debt due to Musk’s controversial changes to the platform, which led to revenue declines and increased default risks.

In late 2022, attempts to sell the debt resulted in bids that would have caused banks to take a significant loss. The consortium of banks involved in financing the X deal includes Mitsubishi UFJ, BNP Paribas, Mizuho, and Societe Generale. The banks are now looking to mitigate potential losses by selling the debt.



Read more at Investing.com: Wall Street banks prepare to sell up to $3 billion in X loans next week, sources say By Reuters