Morgan Stanley Sells $5.5 Billion of X Debt on Demand Surge

  • The sale fully offloads banks’ exposure to senior term loan
  • Musk’s White House ties have stirred fresh interest in X debt
Photographer: Tuane Fernandes/Bloomberg
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A group of Morgan Stanley-led banks sold $5.5 billion of debt tied to Elon Musk’s social-media platform X after receiving stronger-than-expected demand from investors, according to people with knowledge of the matter.

The banks initially planned to sell about $3 billion worth of the loan but received enough interest to parcel out additional debt. They eventually were able to sell the entire remaining slug of the highest-ranking borrowings used to fund Musk’s buyout of the platform formerly known as Twitter Inc., marking a significant milestone in their effort to free their balance sheet from the X exposure.