Elon Musk or Twitter may be in for some large fees if the deal for the Tesla CEO to buy the social media company falls through
Musk would have to pay Twitter a termination fee of $1 billion if he fails to secure enough debt funding for the $44 billion deal.
The new S.E.C. filing details the terms of the agreement and denotes that Twitter would also have to pay the same fee under specific circumstances.
Musk has agreed to take the company private purchasing it for just over $54 per share.
Funding for the deal will be provided a variety of sources including $13 billion from Morgan Stanley with $12.5 billion in margin loans to Musk, with the Space X CEO also to provide equity financing of around $21 billion.
