In a series of filings with the Securities and Exchange Commission, Musk disclosed that he had secured $46.5 billion in financing, making the possibility of acquiring Twitter a very real possibility. A few commentators had at first questioned his capacity to secure the stories required , but this ought to put to rest one of the most grounded counterarguments to the board considering his offer.

A consortium of banks has provided a consortium of lenders with $25.5 billion in different credit facilities, including an equity investment of $21 billion from Musk. The banks that are included in the study are Morgan Stanley, Barclays, and Bank of America. They are all large financial institutions that provide a variety of services to their customers.

He will need to pledge $62.5 billion in Twitter stock as collateral to help secure the debt facility. Margin calls may become possible down the road, which could be bad for Tesla shareholders if the company’s biggest owner gets to be a constrained vendor of stock.

It is anticipated Musk will keep some cash on hand as well as sell some of his stake in Twitter, SpaceX, and/or the Boring Company to generate $21 billion in equity.

In any case, he’ll have to give up a significant portion of his main interests to make the transaction work. The acquisition offer from Twitter is a substantial premium to the company’s previous price, and it is likely to become more difficult for a bank to give a fair opinion against the deal. This makes it more likely that the acquisition will be completed.

This is especially true when Twitter generates EBITDA of less than $1 billion despite generating GAAP losses.

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