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The Wall Street Journal reported on Wednesday that Elon Musk’s team is considering using up to $3 billion in new fundraising to help repay some of the $13 billion in debt tacked onto Twitter Inc for his takeover of the company.
Musk’s representatives discussed selling up to $3 billion in new Twitter shares in December, according to the report.
Twitter did not respond immediately to a request for comment from Reuters. Musk responded in a tweet to a question about whether the WSJ report was true or not.
Tesla CEO Elon Musk borrowed $13 billion from a syndicate of banks, including Morgan Stanley and Bank of America Corp, to complete the Twitter acquisition in October.
According to people familiar with the company’s finances, Musk’s team has stated that an equity raise, if successful, could be used to pay down an unsecured portion of the debt that carries the highest interest rate within the $13 billion Twitter loan package.
