Elon Musk’s recent antics have made it difficult for his banks to sell the debt required to finance the Twitter deal.
As a result, they’ve decided to just hold onto it instead. This move threatens to bring leveraged buyouts to a halt, as it ties up capital that could be used to finance other deals.
Elon Musk’s recent antics have made it difficult for his banks to sell the debt required to finance the Twitter deal. As a result, they’ve decided to just hold onto it instead.
According to The Wall Street Journal, this $13 billion move threatens to bring leveraged buyouts to a standstill by tying up capital that could be used to finance other deals.
This is truly a next-level “hold my beer” move, as it puts pressure on other banks to step in and help Musk finance the deal. However, with leveraged buyouts already faltering, it’s unlikely that any other bank will be willing to take on such a risk.
This could ultimately lead to the demise of the leveraged buyout altogether.
Elon Musk’s recent antics have put his banks in a tight spot. In order to finance the Twitter deal, they’ve had to take on $13 billion in debt – which they can’t seem to get rid of. As a result, they’re just going to hold onto it, which threatens to bring leveraged buyouts to a halt.
Elon Musk has once again managed to shake things up.
