Funding *Actually* Secured
Image: Tenor via Bloomberg
In a formal filing with the SEC yesterday, Elon Musk said he has lined up $46.5 billion in debt and equity financing to buy Twitter.
🐦💰 The deets:
- Per the filing, the Technoking of Tesla is prepared to personally commit $21 billion towards the deal. Think: the equivalent of a down payment on a home (but, like, wayyyyyyy more).
- The additional ~$25 billion is a loan from a group of banks including Morgan Stanley, Bank of America, and Barclays. About half of the debt is secured by Musk’s Tesla shares.
- Musk is also still considering bringing in potential equity partners, according to the WSJ; this could potentially lower his $21 billion personal commitment.
👀 Looking ahead… Twitter’s board is expected to reject the offer over the coming days. At which point, Musk said he’s prepared to make a tender offer to shareholders, which would allow him to sidestep the board and take his proposal directly to shareholders, who would then get to decide the future of the company.
+Dig deeper: We covered Musk’s offer for Twitter in-depth on Tuesday. Check it out here.
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