Twitter Buyout Loans Get Bid at 60 Cents as Banks Sound Out Investors
- Investment funds are demanding steep discounts on buyout debt
- Banks face big battle to offload debt as credit markets sour
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Wall Street banks that lent $13 billion to help fund Elon Musk’s buyout of Twitter Inc. have been quietly sounding out hedge funds and other asset managers for their interest in a chunk of the buyout debt at deeply discounted prices.
Some funds have offered to take a piece of the loan package at a discount as low as 60 cents on the dollar, which would be among the steepest markdowns in a decade. The banks have so far deemed those bids unattractive, according to people with knowledge of the discussions who asked not to be identified because the talks were private.