Elon Musk has privately assured bankers who lent him $13 billion to finance the acquisition of the social media platform X that they will not lose any money in the deal. These verbal assurances were made to reassure the lenders after the platform’s value, formerly known as Twitter, has since plummeted, according to informed sources cited by the Financial Times.

Despite these assurances, the seven banks that loaned money to the billionaire for the leveraged buyout – Morgan Stanley, Bank of America, Barclays, MUFG, BNP Paribas, Mizuho, and Société Générale – face significant losses if they eventually sell the debt.

Large hedge funds and credit investors on Wall Street held discussions with the banks at the end of last year and offered to buy the senior portion of the debt at a price of around 65 cents per dollar.

However, in recent interviews with the British business newspaper, some of them said that there was no price at which they would buy the bonds and loans, as they could not assess whether Linda Yaccarino, the CEO of X, would be able to steer the company to success.

A sale of the $12.5 billion in bonds and loans below 60 cents per dollar – a price that many investors in the current market environment seem to consider a stroke of luck – would result in losses of at least $4 billion before taking into account X’s interest payments, according to calculations by the FT.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	Europe
Countries	🇺🇸 🇬🇧
Sentiment	very negative
Relevance Score	1
People	Linda Yaccarino, Elon Musk
Companies	Société Générale, Morgan Stanley, MUFG, BNP Paribas, Bank of America, Mizuho, Barclays
Currencies	None
Securities	Société Générale, Morgan Stanley, MUFG, BNP Paribas, Bank of America, Mizuho, Barclays