Musk Has a Bigger Problem Than Bots: A Huge Twitter Debt Burden

Elon Musk may be directing his buyer’s remorse at Twitter Inc.’s bot problem. But underpinning the deal is a $13 billion debt bill that’s looking like a bigger burden by the day.

The package, drummed up in a rush and signed by banks before the end of the billionaire’s beloved April 20 weed holiday, will leave the social media platform with an annual interest expense approaching $1 billion, giving the company an alarmingly small margin for error.

To sober-minded credit analysts, second thoughts about the deal are to be expected.

The purchase will be funded with a leveraged loan and ...