The Wall Street banks sold all $ 12.5 billion of debts associated with the purchase of Twitter Elon Musk

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Wall Street Banks has got rid of all the loans used by Elon Musk, approximately $ 12.5 billion, to help finance his seizure on Twitter, crowning an amazing reassessment of debt since Donald Trump handed the billionaire role in the heart of his administration.

A group of banks, led by Morgan Stanley, sold $ 4.74 billion of loans late Thursday, more than $ 3 billion in initially planned, as investors made $ 12 billion in requests, according to the people familiar with the matter.

The latest sale is a blessing for a group of seven lenders, including Bank of America, Barklise and MUFG, who have been installed with debts since it rose $ 12.5 billion in October 2022 to finance the purchase of Musk from the social media platform, which renamed its name. x.

They are now carrying a little more than a billion dollars of loans after the sale, which confirms how the proximity to Musk to Trump has been about the perception of debts that investors previously considered as risky.

On another mark on the demand, large blocks of loans were already circulated between 101 and 102 cents in dollars in the secondary market after selling on Thursday.

The lenders rejected the offers from investors to buy debts with highly declining discounts in 2023 and 2024, instead betting that it will be converted into X operations that would limit possible losses on loans.

The investor’s interest in loans grew in the weeks that followed Trump’s electoral victory in November, with Morgan Stanley receiving to buy debts from 75 to 80 cents on the dollar.

The attractiveness of loans increased after Musk gave a stake in the company XAI in the company’s artificial intelligence. In addition to enhancing the assessment of the social media company, this step has provided new safety for anyone carrying loans.

In January, Morgan Stanley sold $ 1 billion of debt to a group of big credit investors, including Diameter Capital Partners. This was followed by the sale in February $ 5.5BN Among the loans, at a price of 97 cents on the dollar, before selling banks this week without any discounts.

As part of the increase in the sale of fixed loans on Thursday, X agreed to end the 500 million dollar rounds facilitation with the seven banks.

Investors are now waiting for bids to sell more than a billion dollars of the unintended loan, which is the final, most dangerous part of the deal. This debt will pay a higher interest rate, but it is more likely to be lost if X will fall in bankruptcy or the need to restructure its debts.

It is not clear how Morgan Stanley and other six banks will continue to sell. Lessers can either market debt or re -fund them through new favorite property rights, given the strong demand for other parts of $ 12.5 billion, according to one person familiar with the matter.

Morgan Stanley refused to comment. X did not respond to a request for comment.