Banks that provided debt financing for Musk's acquisition of Twitter are considering selling related debt

On the morning of July 3, Beijing time, it was reported that the bank that provided debt financing for Elon Musk's acquisition of Twitter in October last year was considering selling the debt as soon as International Labour Day of the United States in September. The move means that interested investors can buy Twitter bonds, and the banks' floating losses on these debts are likely to turn into actual losses.

The banks will not consider selling the debt until Twitter's financial situation improves, the report said. After Musk's acquisition, many advertisers left the Twitter platform, while the overall digital advertising market also declined.

As a result, even if Mr Musk tries to improve Twitter's finances through massive layoffs, Twitter's business has been severely affected.

In addition, a number of large investors have said they will not be able to invest in Twitter debt until next year at the earliest.

In many large acquisitions, banks provide leveraged debt financing and then sell the debt, such as in the acquisitions of Citrix systems and Nielsen. As a result, it is not in line with the usual practice for banks to still hold debt acquired by Twitter.