Morgan Stanley and six other banks have sold $4.74 billion of debt from X Holdings Corp., marking a significant turn in fortune for the lenders. This is the third sale of X debt in less than a month, following two previous deals that helped reduce the company’s debt burden.
The latest transaction came after strong investor demand, with buyers paying face value for 9.5% debt due in 2029. The deal marked an extraordinary change from earlier attempts to offload the debt, which had faced resistance due to concerns about Elon Musk’s leadership and content moderation policies.
However, recent revenue growth figures have helped alleviate these concerns. X Holdings’ adjusted revenue increased by 40% year-over-year in December, with monthly figures showing a significant spike. These updates have helped change perceptions about the company’s prospects, with investors now expecting a positive outcome from Elon Musk’s involvement.
The sale is part of a broader trend that has seen banks quickly offload debt after financing a buyout. The latest transaction brings down X Holdings’ remaining debt burden to $1.3 billion, following two previous deals worth $1 billion and $5.5 billion respectively.
Source: https://finance.yahoo.com/news/morgan-stanley-aims-boost-size-153550593.html