Financial institution of America CEO is not fearful about debt funding

The CEO of Financial institution of America, one of many financiers of Elon Musk’s Twitter takeover, would not seem fearful concerning the deal.

CNBC reported on Thursday that Musk is now accountable for Twitter. Binance, one of many traders within the deal, advised CNBC the acquisition has closed.

After Musk first introduced plans to purchase Twitter in April, he secured fairness financing from an array of traders, together with know-how companies, in addition to debt financing from a variety of funding banks. A type of was Financial institution of America.

However with the rout in know-how shares this yr and traders cautious on dangerous property, that debt may very well be exhausting to promote on to traders, which means the banks could have to carry onto the debt.

The Wall Road Journal reported Wednesday that the funding banks could maintain onto the debt till subsequent yr earlier than promoting it. Credit score analytics agency 9fin estimates the banks may face losses of $500 million in the event that they offered the debt within the present surroundings.

In an interview with CNBC on Friday, Financial institution of America CEO Brian Moynihan, appeared unfazed nevertheless.

When requested if he would lose sleep over the deal, he mentioned: “I’ve received consultants that deal with the purchasers and I do not lose sleep on them. I lose sleep for lots of different issues, however not for that.”

The banks that pledged to finance the deal have began releasing the funds into an escrow account, in line with the Wall Road Journal. When the acquisition closes, the funds will probably be handed to Musk to finance the deal.

There was no official affirmation that the deal has been accomplished but, however Musk alluded to it being closed in tweet which mentioned: “the chook is freed,” referring to Twitter blue chook brand.