Elon Musk never seizes to surprise both investors and the public at large. He’s still making headlines by his tweets, but this time they weren’t just memes or taunts.
He began with a tweet directed at Twitter at the end of March. At that time, it appeared to be one of his usual whims, but on April 4, 2022, the Tech tycoon revealed owning 9.2% of Twitter’s stake – making him the company’s largest shareholder. Recently, he made a proposal to acquire further stake, however, momentarily it seems to be postponed for a bit.
Elon Musk’s Twitter Acquisition
According to a 13D filing on April 13, Tesla CEO Elon Musk is set to acquire another stake of $46.5 billion in Twitter Inc. (NYSE: TWTR) at $54.20 per share. He has decided to make the aforementioned investment in the following three ways.
- A debt commitment letter, dated April 20, 2022, from Morgan Stanley Senior Funding, Inc. And certain other financial institutions party thereto as commitment parties pursuant to which the Commitment Parties have committed to provide $13 billion in financing to the Reporting Person and related entities as follows: (a) a senior secured term loan facility in an aggregate principal amount of $6.5 billion, (b) a senior secured revolving facility in an aggregate committed amount of $500 million, (c) a senior secured bridge loan facility in an aggregate principal amount of up to $3 billion and (d) a senior unsecured bridge loan facility in an aggregate principal amount of up to $3 billion.
- A separate debt commitment letter, dated April 20, 2022, from Morgan Stanley Senior Funding, Inc. And certain other financial institutions party thereto as commitment parties (collectively, the “Margin Loan Commitment Parties”) pursuant to which the Margin Loan Commitment Parties have committed to provide $12.5 billion in margin loans (the “Margin Loan Facility”), the proceeds of which will be distributed or otherwise made available to Purchaser; and
- An equity commitment letter, dated April 20, 2022, from the Reporting Person pursuant to which the Reporting Person has committed to provide equity financing for the Proposed Transaction or the Potential Offer sufficient to pay all amounts payable in connection with the Offer and the Merger (plus related fees and expenses), net of the amounts to be funded pursuant to the Debt Commitment Letter and the Margin Loan Commitment Letter, which is currently expected to be approximately $21 billion.
However, it has been a week and Twitter has yet not provided any feedback on the proposal by Musk. Therefore, the acquisition may be postponed for a bit.