It seems neither do the banks.
Twitter Buyout Loans Get Bid at 60 Cents as Banks Sound Out Investors
Looks like Twitter is going to have problems getting any new products out the door because the privacy and compliance heads have left.
https://www.theverge.com/2022/11/10/...s-fine-warning
Also I was vastly off on the number of verified account pre Elon. It was only 400,000.
And to add to the pile on, Elon has a court date week. It’s a shareholder lawsuit over his $56 billion Tesla pay package. Although the plaintiff is just one person with 9 shares, the repercussions of a potential victory will be huge. I’m sure any pension/mutual/index fund that held Tesla stock will be pulling for him.
So the good news for him is that since he is rapidly losing money, his problems are going away?
As someone who enjoys spending time with my children and being actively engaged in their lives while they will still allow me to do so (they are not yet teenagers), I am still amazed that Musk has 10 children, given how much time he spends running around the world for Tesla, Twitter and everything else. I wonder whether he can pick most of them out of a lineup.
Just did some googling and max rate on unsecured looks like it is 11.75%, though I wouldn't swear to this. Which is still well below the current rate for similar deals. So it is the worst of both worlds - high enough that it is painful for Elon to pay, but low enough that the banks are taking a bath on it.
Morgan Stanley led the overall deal. I thought I saw somewhere that all the lenders held proportionate shares of all the tranches but I can’t find that again so not sure.
All of these banks were tripping over themselves to make Elon happy to get future banking business, and I think they also set rates when the deal was initially signed in the spring when the market was much stronger for these types of deals.
That's interesting. I mean, I'm fascinated by the way it's going, but I don't think that necessarily means it's a good thing for Twitter.
Some people are perfectly happy to watch an entity burn. For instance, what was the favorite Tar Heel season of the last 25 years for folks on this board?
I liked this:
FhTscq5WAAA3R3u.jpg
Amazing how some senior bankers do deals without the basics. A junior banker does a deal, one hundredth the size, and they’re expected to acquire, analyze, and discuss the borrower’s business plan and financials. A simple projected cash flow statement raises concerns. And, a junior would not expose the firm to massive interest rate risk but, instead, simply price the deal with an agreed benchmark spread.