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You do not seem to know what you're talking about. The 12.7bn that was borrowed is going on Twitter's books. Their debt load prior to this leveraged buyout was
by trowawee 4y ago
You do not seem to know what you're talking about. The 12.7bn that was borrowed is going on Twitter's books. Their debt load prior to this leveraged buyout was 5.5bn; it's now 18.3bn[0], with yearly interest payments of roughly 1bn.
[0]: https://www.barrons.com/articles/tesla-stock-twitter-debt-51667242672 https://www.barrons.com/articles/tesla-stock-twitter-debt-51...
- humanizersequel 4y ago>yearly interest payments of roughly 1bn This is on top of the principal? They pay 1bn every year and none of it counted against their debt?
- trowawee 4y agoYes, that's just for the interest.
- hnfong 4y agoThat's about right. 1bn/18.3bn = 5.4% "Risk free" treasury bond yields are ~4.x% 1% premium for the risk seems reasonable given that Twitter is not known for making profits. Presumably some of the debt were incurred before the rate hikes so it's kind of on the low side.