TWTR

The banks financing the Twitter (NYSE:TWTR) Musk deal are starting at a loss of about $500 million, Bloomberg reported. Per the report, Morgan Stanley (NYSE:MS), Bank of America Corp NYSE:BAC), Barclays Plc (NYSE: BCS), and Mitsubishi UFJ committed $13 billion in debt financing for the deal. However, as interest rates have risen on the back of the Fed’s hawkish stance, these banks will bleed money for financing the deal at lower yields. Further, the Bloomberg report highlighted that out of the $500 million estimated loss, $400 million is related to the risky unsecured bonds, which have a higher interest rate of 11.75%.
https://www.tipranks.com/news/twitter-nysetwtr-musk-deal-may-mean-500m-losses-for-the-banks?utm_source=advfn.com&utm_medium=referral