Today is the final opportunity for investors to get on board with Elon Musk’s artificial intelligence startup, xAI Corp. Commitments were initially due on Tuesday, but Morgan Stanley has extended the deadline.
As the deadline approaches, Musk’s team and Morgan Stanley have offered more favorable pricing on its $5 billion debt offering.
As of now, the package includes $3 billion in bonds with a 12.5% yield, a $1 billion fixed-rate term loan with a 12.5% interest rate, and a $1 billion term loan B priced 7.25 percentage points above the benchmark rate, discounted by 96 cents on the dollar. Previously, each component had been priced at lower rates, and the term loan B had a smaller discount.
Experts believe that the offering released earlier this month has been impacted by Musk’s fallout with US President Donald Trump, along with investor concerns regarding xAI’s financial stability.
This week, the company came under scrutiny due to a new legal challenge initiated by the NAACP concerning air pollution from its supercomputer facility in Memphis.
By CEO NA Editorial Staff
