Wall Street banks prepare to sell up to $3B in X loans next week
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Re: Wall Street banks prepare to sell up to $3B in X loans next week
#2I wonder who's going to be buying, since they're selling at just a 5% discount. Since the purchase, Twitter has lost 85% to 90% of its revenues. So, I think the discount doesn't factor in just how much value X has lost. And, unless Musk buys back the debt, I don't see any takers lining up.
Judging by how much stock Elon had to sell, plus the loans/equity raised for the initial purchase, it feels like an all-round bad decision.
From another perspective, judging by how X played a huge role in the 2024 election & Elon's new role as First Friend, maybe his rapidly improving fortune factors into the calculus.
Re: Wall Street banks prepare to sell up to $3B in X loans next week
#3Anyone buying at a 5% discount is torching money
Re: Wall Street banks prepare to sell up to $3B in X loans next week
#4I'll give them $1.98.
Re: Wall Street banks prepare to sell up to $3B in X loans next week
#5Bonds selling below par is common, so this article with very few details doesn't say much.
IIRC Twitter LBO bonds were getting an average of 9.6% YTM when raised, and had maturities from 2027 to 2030. Selling at 90-95 means an increase in the yield of about 2% (napkin math says 1%-5%).
Re: Wall Street banks prepare to sell up to $3B in X loans next week
#6I wonder who's going to be buying, since they're selling at just a 5% discount. Since the purchase, Twitter has lost 85% to 90% of its revenues. So, I think the discount doesn't factor in just how much value X has lost. And, unless Musk buys back the debt, I don't see any takers lining up. Judging by how much stock Elon had to sell, plus the loans/equity raised for the initial purchase, it feels like an all-round bad…
It’s not particularly clear that X played a significant role
Re: Wall Street banks prepare to sell up to $3B in X loans next week
#7I wonder who's going to be buying, since they're selling at just a 5% discount. Since the purchase, Twitter has lost 85% to 90% of its revenues. So, I think the discount doesn't factor in just how much value X has lost. And, unless Musk buys back the debt, I don't see any takers lining up. Judging by how much stock Elon had to sell, plus the loans/equity raised for the initial purchase, it feels like an all-round bad…
It’s not particularly clear that X played a significant role
I doubt it changed anyone’s mind. It’s just a rallying point for one side at this point.
Re: Wall Street banks prepare to sell up to $3B in X loans next week
#8I wonder who's going to be buying, since they're selling at just a 5% discount. Since the purchase, Twitter has lost 85% to 90% of its revenues. So, I think the discount doesn't factor in just how much value X has lost. And, unless Musk buys back the debt, I don't see any takers lining up. Judging by how much stock Elon had to sell, plus the loans/equity raised for the initial purchase, it feels like an all-round bad…
Re: Wall Street banks prepare to sell up to $3B in X loans next week
#9I wonder who's going to be buying, since they're selling at just a 5% discount. Since the purchase, Twitter has lost 85% to 90% of its revenues. So, I think the discount doesn't factor in just how much value X has lost. And, unless Musk buys back the debt, I don't see any takers lining up. Judging by how much stock Elon had to sell, plus the loans/equity raised for the initial purchase, it feels like an all-round bad…
I'm sure it factors into the calculus of the sellers -- best chance they have that there might exist an irrational buyer onto whom they can unload the losses is likely now ...
Re: Wall Street banks prepare to sell up to $3B in X loans next week
#10I wonder who's going to be buying, since they're selling at just a 5% discount. Since the purchase, Twitter has lost 85% to 90% of its revenues. So, I think the discount doesn't factor in just how much value X has lost. And, unless Musk buys back the debt, I don't see any takers lining up. Judging by how much stock Elon had to sell, plus the loans/equity raised for the initial purchase, it feels like an all-round bad…
"$34B is a steep price to kill Twitter, but maybe it's worth it", a somebody wrote back in the day.
Apparently it sort of was worth it for Musk, but it cost him, and is going to cost further down the line.