Elon Musk’s proposed bid for Twitter got a lot more serious on Thursday, and if successful the deal could cost Musk about $1 billion …
Elon Musk’s proposed bid for Twitter got a lot more serious on Thursday, and if successful the deal could cost Musk about $1 billion in annual interest payments. In a filing made with the SEC on Thursday, Musk revealed that he has received several commitment letters from banks to fund his proposed takeover of Twitter. As it turns out, taking on billions of dollars in debt costs a lot in annual interest payments. While Musk plans to fund nearly half of the deal with his own cash, he also plans to utilize a mix of debt and lines of credit to raise the funds necessary to buy every outstanding Twitter share he doesn’t own for $54.20 per share. According to the filing, Musk has received a letter of commitment from banks that have offered to lend him $13 billion to Twitter if he buys the company, with a mix of secured bank loans and junk bonds.
