X plans to repurchase $1.2b in buyout debt

Elon Musk’s X is set to buy back the last $1.2 billion of debt linked to its 2022 buyout, easing the burden on Wall Street banks that have held the riskier portion for years, according to a source familiar with the matter. X’s recent equity raise may partially fund the repurchase, though plans remain subject to change.

The move will allow a group of seven banks, led by Morgan Stanley, to clear the final portion of the $13 billion in loans they provided for Musk’s $44 billion acquisition of the platform, formerly Twitter. X and Morgan Stanley declined to comment.

Earlier this year, banks offloaded most of the debt, benefiting from X’s improved finances, its stake in artificial intelligence firm xAI, and Musk’s ties to former U.S. President Donald Trump, which helped attract investors.

Attribution: Bloomberg
Subediting: M. S. Salama