Wall Street banks prepare sale of up to $3 billion in X loans next week, sources say

(Reuters) – Wall Street banks are preparing to sell a big portion of debt holdings in social media platform X, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Bankers at Morgan Stanley (NYSE:MS) have contacted investors ahead of next week’s planned sale of up to $3 billion in debt that lenders like Bank of America and Barclays (LON:BARC) granted Elon Musk in order to finalize his 2022 acquisition of the business that was formerly known as Twitter, the report added.

The banks are looking to sell senior debt at 90 to 95 cents on the dollar and retain more-junior holdings, as per the report.

Morgan Stanley did not immediately respond to a Reuters request for comment.