Excellent explanation. To add to that - this is a typical example of an asymmetrical transaction for the lender(s). If Musk+Twitter are successful, lenders’ ups

Excellent explanation. To add to that - this is a typical example of an asymmetrical transaction for the lender(s). If Musk+Twitter are successful, lenders’ upside is limited by the debt interest and if Musk+Twitter fail - they are left with a huge underperforming asset on the books. This is nothing new for the banks - essentially it is a potential foreclosure on a defaulted mortgage, just on a different scale, so the risk will be priced into the loan conditions.