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Is Elon Musk’s Twitter in too much trouble to cover its debts?
- Zigurd 4y agoThis is a well-researched and fact-filled article, for example: The debt... loaned by a consortium of banks led by Morgan Stanley, comprises: a $6.5bn senior secured term loan facility (a bank loan); a $3bn senior secured bridge loan facility... ; and a $3bn senior unsecured bridge loan facility. Twitter also has a $500m senior secured revolving facility... The article points out that the line of credit could be used to make an interest payment. Technically correct, and I don't expect Twitter to hit the wall this month. But the article fails to mention what bridge loan terms might be. The fact that bridge loans are in the mix means negotiations on paying them back soon should be under way.
- jacquesm 4y agoIt could be, but the terms of the loan may well have foreseen and blocked that possibility.