1. A letter from his banks offering to lend $13 billion to Twitter, if he buys it, with $7 billion of that coming in the form of senior secured bank loans and $6 billion coming in the form of junk bonds.
2. A letter from his banks offering to lend him $12.5 billion personally, secured by $62.5 billion worth of his Tesla Inc. stock. At yesterday’s closing price, that comes to about 64 million shares, or about one-third of his Tesla stake.
4. An agreement with himself to put up the other $21 billion, give or take.
Musk is the man of leverage and likes to live on the edge. Loans with junk bond rates, his stake on Tesla,
Levine:
>... So Musk will be paying his banks, personally, about $1 billion a year for the privilege of owning Twitter. It is possible that Twitter will be paying him $1 billion a year of dividends, after its own debt servicing costs, but it is, uh, unlikely in the near future. It is more likely that running Twitter will be a continuing expense for him. But, again, he has said that he’s not in it for the money. Spending $33 billion to buy Twitter, and then another $1 billion a year to own it, is I suppose in a way a kind of philanthropy for Musk?
He is. Tesla, SpaceX, etc all play to win, but they did it by almost going bankrupt and out over and over and over.
Im not sure I can sit here and say that it wasnt needed, but people need to remember that 4 years ago, Tesla was at deaths door trying to scale up, shorters were doing everything in their power to maniuplate the stock, and no one thought they could pull it off the way they have.
1. A letter from his banks offering to lend $13 billion to Twitter, if he buys it, with $7 billion of that coming in the form of senior secured bank loans and $6 billion coming in the form of junk bonds.
2. A letter from his banks offering to lend him $12.5 billion personally, secured by $62.5 billion worth of his Tesla Inc. stock. At yesterday’s closing price, that comes to about 64 million shares, or about one-third of his Tesla stake.
4. An agreement with himself to put up the other $21 billion, give or take.
Musk is the man of leverage and likes to live on the edge. Loans with junk bond rates, his stake on Tesla,
Levine:
>... So Musk will be paying his banks, personally, about $1 billion a year for the privilege of owning Twitter. It is possible that Twitter will be paying him $1 billion a year of dividends, after its own debt servicing costs, but it is, uh, unlikely in the near future. It is more likely that running Twitter will be a continuing expense for him. But, again, he has said that he’s not in it for the money. Spending $33 billion to buy Twitter, and then another $1 billion a year to own it, is I suppose in a way a kind of philanthropy for Musk?