Elon Musk said he has $46.5 billion in debt and equity financing to buy Twitter and is considering taking his offer directly to shareholders, according to a new securities filing.
The filling details that Musk has received commitments for $46.5 billion to help finance the potential deal. The Tesla CEO has secured about $25.5 billion in debt financing through Morgan Stanley Senior Funding and other firms like Bank of America, Barclays, MUFG, Societe Generale, Mizuho Bank and BNP Paribas. Also, he said he has committed about $21 billion in equity financing.
After offering to buy Twitter for $54.20 a share, or about $43 billion last week, Twitter adopted a “poison pill,” (a limited duration shareholder rights plan), protecting the company from a potential hostile takeover.
Since the announcement to take private Twitter was official analysts have speculated on how Musk would finance hid bid.
Musk said the lack of response from Twitter’s board on his initial proposal to purchase the whole company is the reason forcing him to explore a tender offer to purchase some or all shares directly from its stockholders.
Musk, who owns more than 9% stake in the social media company, rejected an initial invitation to join the board, a decision that would imply he couldn’t buy more than 14.9% of the firm. Musk reversed course and instead made a bid to take Twitter private.