Elon Musk takes the next step and offers to buy back Twitter's outstanding bonds, according to a provision that allows investors to sell them back in the event of an acquisition.
Twitter, bought by Elon Musk, will purchase outstanding 3.875% senior notes due 2027 and 5% senior notes due 2030 at an offer price of 101% of principal plus accrued and unpaid interest, according to the filing. The bond agreements required Twitter to offer to buy back its debt in the event of a change in control of the company, according to Bloomberg. In addition, a statement indicates that Musk has become the sole director of Twitter.
“On October 27, 2022, and as a result of the consummation of the Merger, Mr. Musk became the sole director of Twitter. In accordance with the terms of the Merger Agreement, effective as of the effective time of the Merger, the following persons, who were directors of Twitter prior to the effective time of the Merger, are no longer directors of Twitter: Bret Taylor, Parag Agrawal, Omid Kordestani, David Rosenblatt, Martha Lane Fox, Patrick Pichette, Egon Durban, Fei-Fei Li and Mimi Alemayehou,” the statement read.
Musk has already begun active work on improving Twitter, offering users various ideas and studying their reactions to them. However, it is worth bearing in mind that real changes to improve the functionality of the platform have not yet begun, and it will still be some time before something changes.
© 2022, Eva Fox | Tesmanian. All rights reserved.
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