US EditionMorgan Stanley markets $5 billion for Elon Musk-owned xAI in loans, bonds: Reuters
- Morgan Stanley is facilitating the issuance of a $5 billion debt package, consisting of bonds and loans, for Elon Musk's AI company xAI to support its growth initiatives.
- This cautious debt offering reflects lessons from Morgan Stanley's 2022 underwriting of Musk's $13 billion X acquisition debt, which took over two years to offload amid market uncertainty.
- The offering includes a floating-rate term loan at 97 cents on the dollar with 700 basis points over SOFR and a fixed-rate loan and bonds priced at 12%, with terms subject to investor demand.
- XAI is seeking approximately $20 billion through equity investments, with its valuation estimated to be between $120 billion and $200 billion. The company is also finalizing an all-stock acquisition of X, combining their AI technologies and platform, with values of $80 billion for xAI and $33 billion for X, respectively.
- The financing move highlights xAI's strategic push to scale AI development amid rising political and macroeconomic uncertainties affecting Musk's businesses and investor demand for higher risk premiums.
16 Articles
16 Articles
Morgan Stanley Markets $5B of Loans, Bonds for Musk's xAI
Morgan Stanley markets $5 billion for Elon Musk-owned xAI in loans, bonds, sources say
Morgan Stanley is marketing a $5 billion package of bonds and two loans on behalf of billionaire Elon Musk-owned xAI, at the same time as a falling out between the world's richest man and the U.S. president plays out in public, sources familiar with the matter told Reuters.
xAI targets $5 billion debt offering to fuel company goals
xAI’s $5 billion debt offering, marketed by Morgan Stanley, underscores Elon Musk’s ambitious plans to expand the artificial intelligence venture. The xAI package comprises bonds and two loans, highlighting the company’s strategic push to fuel its artificial intelligence development. Last week, Morgan Stanley began pitching a floating-rate term loan B at 97 cents on the dollar with a variable interest rate of 700 basis points over the SOFR bench…
Coverage Details
Bias Distribution
- 67% of the sources are Center
To view factuality data please Upgrade to Premium
