X plans to buy back last $1.2 billion in debt, benefiting banks who shed risk

From Yahoo Finance: 2025-03-21 18:45:00

Elon Musk’s X plans to buy back the last $1.2 billion of debt tied to a social network buyout, relieving banks of risk since 2022. The debt repurchase may be financed by recent equity raise. Banks led by Morgan Stanley stand to benefit from shedding the riskiest portion of loans.

The buyback follows a series of debt transactions earlier this year, where banks offloaded most of the $13 billion in debt arranged for Musk’s acquisition of the platform. X’s improved finances, stake in xAI, and Musk’s relationship with President Trump contributed to investor confidence in the buyout.

A representative for X declined to comment on the debt repurchase, while Morgan Stanley had no immediate comment. The company’s plans to buy back debt may change, but could be a strategic move to further solidify X’s financial standing and reputation in the market.

Read more: X Plans Purchase of Last $1.2 Billion Buyout Debt Held by Banks