Bloomberg Law
May 26, 2022, 9:01 AM

Musk’s Twitter Bid Drops Margin Loan But Needs More Cash (1)

Tom Giles
Tom Giles
Bloomberg News

Elon Musk is dropping plans to partially fund his purchase of Twitter Inc. with a margin loan tied to his Tesla Inc. stake and increasing the size of the deal’s equity component to $33.5 billion.

Musk will provide an additional $6.25 billion in equity financing for the $44 billion buyout, according to a regulatory filing Wednesday. That’s enough to eliminate the margin loan of the same size, which had already been reduced earlier this month.

The new structure could reduce the risk of the deal for both Musk and his lenders, particularly given the recent slide in Tesla’s stock price. ...

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