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Elon Musk looking to scrub Tesla margin loan with new Twitter funding: report

Click to play video: 'Questions, uncertainty remain over Elon Musk’s Twitter buyout'
Questions, uncertainty remain over Elon Musk’s Twitter buyout
WATCH ABOVE: Questions, uncertainty remain over Elon Musk's Twitter buyout – Apr 26, 2022

Elon Musk is in talks to raise enough equity and preferred financing for his proposed buyout of Twitter Inc TWTR.N to negate the need for a $6.25 billion margin loan linked to his Tesla TSLA.O Inc shares, Bloomberg Law reported on Thursday.

The billionaire’s advisers, led by Morgan Stanley, have begun soliciting interest from potential investors for as much as $6 billion in preferred equity financing, the report said, citing people with knowledge of the matter.

Twitter declined to comment on the report, while Musk could not be reached for comment.

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Musk originally took out a $12.5 billion margin loan secured against his Tesla stock to help fund his purchase of Twitter. But he reduced that loan to $6.25 billion earlier this month after bringing in co-investors.

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— Reporting by Tiyashi Datta in Bengaluru

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