On Monday, Elon Musk promised to close the deal to acquire Twitter Inc. by Friday in a video conference call with bankers helping to finance the deal, sources say.
Banks that are providing $13 billion in debt financing have completed the final credit agreement and are in the process of signing the documentation, one of the last steps before actually transferring the money to Elon Musk, according to BNN Bloomberg, citing people familiar with the matter.
Lenders were getting ready to fund the debt and recent events indicate that the deal is in its final stages. The judge ordered the deal to close by October 28, the date Musk requested. The banks are expected to receive one of the last formalities -- a borrowing notice -- on Tuesday, and the cash is expected to be held in escrow on Thursday, the people said.
The total purchase price of Twitter is $44 billion. The banks committed to providing the debt financing in April -- when investors were more willing to invest in risky assets -- and originally hoped to sell $6.5 billion of leveraged loans and $6 billion of junk bonds, split equally into secured and unsecured tranches. On the call on Monday, Musk also promised to help the banks market the debt to money managers after the deal closes, the publication said.
Banks also provided $500 million of a special type of loan typically held by banks called a revolving credit facility, which Twitter will be able to borrow from and pay back until maturity.
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