Elon Musk’s Twitter deal could tank the leveraged buyout market
by Elizabeth Lopatto from The Verge - All Posts on (#65087)
Congratulations to Morgan Stanley, Bank of America. and Barclays! You are holding the beer | Kristen Radtke / The Verge; Getty IMages Elon Musk's antics have made it hard for his banks - Morgan Stanley, Bank of America, and Barclays - to sell the debt required to do the Twitter deal. So they're just going to hold it, all $13 billion of it, The Wall Street Journal reports. Truly a next-level hold-my-beer" move, because it threatens to bring leveraged buyouts to a halt.
Typically, a bank sells the debt used to create a buyout, and moves on to the next deal. But since they're holding Musk's beers, they don't have a free hand to hold anyone else's. Or, as The WSJ puts it, The Twitter move threatens to bring the faltering leveraged-buyout pipeline to a standstill by tying up capital that Wall Street could otherwise use to back new deals."
Part of the reason for holding...