CEO Elon Musk’s Twitter wants to raise up to $3 billion to pay off his current debt of more than $13 billion. According to the Wall Street Journal, Musk and his team have been talking to investors about installment plans. The unsecured portion of the loan package carries the highest interest rates, and Musk reportedly aims to close a deal by the end of this year.
However, some potential investors have expressed concerns about Twitter’s financial performance, which could potentially hurt Musk’s plans. Banks that originally issued the debt did not expect such a high level of risk and have taken on more than $2 billion in other commitments, including term loans and secured debt.
The WSJ reports that lenders have not received formal notice from Musk’s team regarding repayment plans. This uncertainty has caused great concern among stakeholders, particularly those who had invested in the company’s debt with the expectation of being able to sell it.
So there is some uncertainty about the future of Twitter and its debt repayment plans. Musk and his team will likely continue to work with investors to come up with a viable solution. Only time will tell if they will succeed in their efforts or have to find an alternative way to repay their debt. Either way, Musk may have his work cut out if he tries to close a deal by the end of this year.