Musk looks to scrap Tesla margin loan with new Twitter funding – Bloomberg Law
2022.05.12 20:16
FILE PHOTO: Tesla CEO Elon Musk speaks at an event in Hawthorne, California April 30, 2015. REUTERS/Patrick T. Fallon/File Photo
(Reuters) – Elon Musk is in talks to raise enough equity and preferred financing for his proposed buyout of Twitter Inc (NYSE:TWTR) to negate the need for a $6.25 billion margin loan linked to his Tesla (NASDAQ:TSLA) Inc shares, Bloomberg Law reported on Thursday.
The billionaire’s advisers, led by Morgan Stanley (NYSE:MS), have begun soliciting interest from potential investors for as much as $6 billion in preferred equity financing, the report https://news.bloomberglaw.com/mergers-and-acquisitions/musk-seeks-to-scrap-tesla-margin-loan-with-new-twitter-funding?context=search&index=0 said, citing people with knowledge of the matter.
Twitter declined to comment on the report, while Musk could not be reached for comment.
Musk originally took out a $12.5 billion margin loan secured against his Tesla stock to help fund his purchase of Twitter. But he reduced that loan to $6.25 billion earlier this month after bringing in co-investors.
