Musk-Twitter deal poses a headache for Wall Street banks. After the legal drama, Musk agreed to buy Twitter for $54.20 per share. Now, it is time for Morgan Stanley’s Wall Street Banks to step up. However, Wall Street banks have a tough time meeting it. They are already struggling to offload billion of dollars in buyout debt. They committed debt financing for the Musk-Twitter deal in April. The intention was to sell most of that to institutional investors. Bankers may struggle to sell it as credit markets begin to crack. They will have to offer the debt at a steep discount. The Twitter debt includes a $6.5 bn leveraged loan, $3 bn of secured bonds, and $3 bn of unsecured bonds.
