Image Source: Twitter
The Wall Street Journal reported on Wednesday that Elon Musk’s team is considering spending up to $3 billion in additional fundraising to help back part of the $13 billion in debt slapped onto Twitter Inc for his takeover of the firm.
Musk’s agents, according to the story, considered selling up to $3 billion in additional Twitter shares in December.
Twitter did not immediately reply to a request for comment from Reuters. Musk responded in a tweet to a query about if the WSJ article was accurate.
Tesla CEO Elon Musk borrowed $13 billion from a syndicate of banks, including Morgan Stanley and Bank of America Corp., to complete the Twitter acquisition in October.
According to sources familiar with the company’s finances, Musk’s team has stated that an equity offering, if successful, might be used to pay down an unsecured piece of the debt that has the highest interest rate within the $13 billion Twitter financing package.