Bank of America CEO isn’t worried about debt funding

The CEO of Bank of America, one of the financiers of Elon Musk’s Twitter takeover, does not seem worried about the deal.

CNBC reported on Thursday that Musk is now in cost of Twitter. Binance, one of the buyers within the deal, instructed CNBC the acquisition has closed.

After Musk first introduced plans to purchase Twitter in April, he secured fairness financing from an array of buyers, together with know-how companies, in addition to debt financing from a quantity of funding banks. One of these was Bank of America.

But with the rout in know-how shares this 12 months and buyers cautious on dangerous property, that debt might be arduous to promote on to buyers, which means the banks might have to carry onto the debt.

The Wall Street Journal reported Wednesday that the funding banks might maintain onto the debt till subsequent 12 months earlier than promoting it. Credit analytics agency 9fin estimates the banks might face losses of $500 million in the event that they offered the debt within the present atmosphere.

In an interview with CNBC on Friday, Bank of America CEO Brian Moynihan, appeared unfazed nonetheless.

When requested if he would lose sleep over the deal, he stated: “I’ve got experts that handle the clients and I don’t lose sleep on them. I lose sleep for a lot of other things, but not for that.”

The banks that pledged to finance the deal have began releasing the funds into an escrow account, in keeping with the Wall Street Journal. When the acquisition closes, the funds might be handed to Musk to finance the deal.

There has been no official affirmation that the deal has been accomplished but, however Musk alluded to it being closed in tweet which stated: “the bird is freed,” referring to Twitter blue chook brand.


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