Banks to ‘hold $12bn Twitter debt’ till next year

Barclays, Bank of America, and Morgan Stanley are part of a group of lenders reportedly holding $12.7 billion worth of debt for Elon Musk's Twitter deal.

The banks are waiting for Musk to reveal a clear business strategy which they can market to investors, sources told The Financial Times on Monday.

Seven banks in total lent the money to Musk for his $44 billion takeover of the social media platform last month.

The publication said that they will hold the debt for months and are likely to incur big losses on the financing package.

It added that the banks have been in informal talks with credit investors over the past few weeks as the organisations try to determine demand for the debt.

They’re also exploring the discounts that will be needed to shift the debt.

In October, Elon Musk confirmed that he would buy Twitter after the Tesla-owner tried to back out of the multi-billion-dollar buyout in July.

The Twitter board first agreed to allow the $44 billion deal in April.

The social media platform, known as the 'world's town square' had initially pushed back advances from Musk to acquire the platform after it was revealed he had bought a 9.2 per cent stake in the company.

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