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Musk’s Debt Bankers Would Avoid Steep Losses If Deal Fails

  • Losses could top $150 million on one part of the financing
  • M&A advisory fees would soften the blow for some lenders
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Twitter Loses $3 Billion Value as Musk Battle Looms
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Banks are usually upset when large leveraged buyouts fall apart because of the hefty fees they generate. But Elon Musk’s decision to back out of a $44 billion bid for Twitter Inc. may mean dodging steep losses from underwriting the debt. 

Credit markets have tumbled since banks first agreed to raise $13 billion to finance the deal in April. The riskiest piece of the debt package alone would have caused losses of between $150 million and $200 million at current market levels, according to Bloomberg calculations.