Billionaire Tesla CEO Elon Musk denied a report saying he was considering re-borrowing up to $3 billion to help pay off some of the $13 billion debt he had amassed by buying Twitter. Responding to the question of whether the WSJ report is correct, Elon Musk said ‘no’ in a tweet.
Elon Musk denies debt claims
Elon Musk’s team is exploring raising $3 billion in new funding to help pay back some of the $13 billion debt it took for Twitter Inc. to buy the company, the Wall Street Journal reported Wednesday, citing sources on the matter. According to the report, Musk’s representatives discussed selling new Twitter shares for up to $3 billion in December.
Twitter did not immediately respond to news sources’ requests for comment. Responding to the question of whether the WSJ report is correct, Elon Musk said ‘no’ in a tweet. Tesla boss signed a deal with Morgan Stanley and Bank of America Corp. to close the Twitter buyout in October. He also borrowed $13 billion from a bank syndicate.
The report added that Elon Musk’s team told people familiar with the company’s finances that if successful, the equity boost could be used to pay off an unsecured portion of the debt that carries the highest interest rate within the $13 billion Twitter loan package.
“I will not sell Tesla stock for another two years”
Last Tuesday, the FT reported that Elon Musk may consider restructuring the debt used to buy Twitter. The publication added that it is in talks with banks to replace the roughly $3 billion in unsecured debt with margin loans, using Elon Musk’s Tesla (TSLA) with a return of 11.75%.
The latest report comes after an investor in Elon Musk’s $44 billion takeover of social media giant Twitter (TWTR) confirmed last month that a representative of the billionaire had reached out to him to invest in the company. Ross Gerber said the Tesla CEO representative reached out to him last month to invest in Twitter for the $54.20 per share that Elon Musk paid for the company. Meanwhile, as you follow on Kriptokoin.com, Elon Musk promised late last month that he will not sell Tesla shares for about two more years.
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