Days after the micro-blogging site Twitter Inc adopted the ‘poison pill’ defense against the hostile takeover by Elon Musk, the SpaceX and Tesla CEO has secured financing worth $46.5 billion to buy the social media platform, according to the company’s regulatory filing viewed by Outlook Business.
According to the regulatory filing, to finance the transaction Musk has committed to invest $33.5 billion which includes $12.5 billion as margin loans as well as $21 billion of equity.
Moreover, investment banking firm Morgan Stanley has agreed to issue a debt of $13 billion—which includes $6.5 billion as a term loan in principal amount, $500 million as an aggregate committed amount, $3 billion as the secured bridge loan in aggregate principal amount, and $3 billion as unsecured bridge loan facility.
According to Reuters, Apollo Global Management and Thoma Bravo is also considering ways to finance the bid.
Last week, Musk offered to buy Twitter worth $41.39 billion. He has offered $54.20 per share, at a 38 per cent premium to the closing price of Twitter’s stock on April 1, the last trading day before Musk bought the majority stake in the company.
On April 4, Musk acquired a 9.2 per cent stake in the company, thus becoming the second-largest shareholder of the social media platform. Musk currently owns 73.5 million shares of common stock in his personal capacity.
According to reports, Musk is also planning for a tender offer to acquire the company.