Banks including Morgan Stanley, Bank of America, and Barclays offered a deal to investors seeking minimum commitments in the hundreds of millions.

A group of Morgan Stanley-led banks sold $5.5 billion of debt tied to Elon Musk’s social-media platform X after receiving stronger-than-expected demand from investors, according to people with knowledge of the matter.

The Wall Street firms got stuck with US$13 billion of debt that Musk heaped on X during his surprise bid to take it private in 2022. While banks typically try to resell debt they commit to fund an acquisition quickly, investors balked in this case after Musk upended X’s business, laid off staff and sparked a steep revenue decline.

By Shankar Ramakrishnan NEW YORK (Reuters) -Banks led by Morgan Stanley have sold $5.5 billion of some $13 billion of debt they lent to support Elon Musk's $44 billion acquisition of Twitter, now called X,

Wall Street banks are getting ready to sell up to $3 billion of debt holdings in X, the social-media platform controlled by Elon Musk, two sources with knowledge of the matter said Friday. Morgan Stanley bankers have reached out to investors ahead of a planned sale next week, the people added.