(Reuters) -Morgan Stanley is selling the last $1.23 billion of debt related to Elon Musk’s $44 billion buyout of social media platform Twitter, now called X, a person familiar with the matter said on Thursday.
The bank is offering the debt in the form of a fixed-rate loan at an interest rate of 9.5% and a discounted price of 97.5 to 98 cents on the dollar, the person added.
The move would allow the investment bank to shed the debt tied to a deal that drew significant attention. Musk has dramatically reshaped the social media platform since taking control.
Besides Morgan Stanley, other lenders including Bank of America, Barclays and Mitsubishi UFJ (NYSE:MUFG) had also participated in Musk’s buyout, lending him a total of $13 billion.
Musk’s close relationship to U.S. President Donald Trump and prospects of X’s improving revenue allowed banks to offload almost all of the $13 billion they had been holding on their books for nearly two years.
The acquisition was funded by a $6.5 billion secured term loan, a $500 million revolving credit facility, a $3 billion unsecured loan and $3 billion of secured loans.
Morgan Stanley and X did not immediately respond to Reuters requests for comment.
Bloomberg News reported the development earlier in the day.
Last month, Musk said his AI company, xAI, had acquired X.