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Why can't he take out a loan against those shares?
by mangoTangoBango 4y ago
Why can't he take out a loan against those shares?
- kgwgk 4y agoHe's also doing that: https://www.bloomberg.com/opinion/articles/2022-04-21/elon-got-his-money https://www.bloomberg.com/opinion/articles/2022-04-21/elon-g... Elon Musk needs about $46.5 billion to buy Twitter at $54.20 per share: about $39.4 billion to pay for the 91% of Twitter’s stock that he doesn’t currently own, about $4.3 billion of debt to refinance and various miscellaneous costs. To pay that, he has: A letter from his banks offering to lend $13 billion to Twitter, if he buys it, with $7 billion of that coming in the form of senior secured bank loans and $6 billion coming in the form of junk bonds. A letter from his banks offering to lend him $12.5 billion personally, secured by $62.5 billion worth of his Tesla Inc. stock. At yesterday’s closing price, that comes to about 64 million shares, or about one-third of his Tesla stake. An agreement with himself to put up the other $21 billion, give or take.