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Elon Musk's xAI offers investors more favorable pricing for $5 billion debt issuance
Summary: According to reports, Elon Musk's artificial intelligence startup xAI Corp. has provided investors with more favorable pricing for its $5 billion debt issuance, while Morgan Stanley has also concluded the commitment solicitation for the transaction on the same day. According to sources, the issuance plan now includes: $30 billion bonds with a 12.5% yield $10 ...
According to reports, Elon Musk's artificial intelligence startup xAI Corp. has provided investors with more favorable pricing for its $5 billion debt issuance, while Morgan Stanley has also concluded the commitment solicitation for the transaction on the same day.
According to sources, the issuance plan now includes:
$30 billion bonds with a 12.5% yield
$10 billion fixed-rate term loans with a 12.5% interest rate
$10 billion Class B term loans priced at benchmark rate plus 7.25 percentage points, issued at a discount of 96 cents on the dollar
Some investors had previously expected the company to increase the debt yield to complete the transaction. (TechinAsia)
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