Banks funding Twitter deal will maintain $13B in debt, somewhat than syndicate it NYSE:TWTR)

Banks that dedicated to fund Elon Musk’s $44 billion buy of Twitter (NYSE:TWTR) plan to retain $13 billion of debt backing the deal somewhat than syndicated it.

The banks are mentioned to have decided to carry the debt on their stability sheets somewhat than promote it at a loss, in response to a WSJ report, which cited folks acquainted. Banks backing the Twitter transaction embody Morgan Stanley (MS), Financial institution of America (BAC) and Barclays (BCS).

The Twitter deal is predicted to shut by subsequent Friday and assuming it does, the banks count on to promote among the Twitter debt by early subsequent 12 months, in response to the report.

The WSJ report comes after numerous media reported earlier this month that banks could lose about $500 million of their effort to fund Elon Musk’s buy of Twitter (TWTR) because the debt market have seized in current months. The banks initially agreed to fund the acquisition even when they could not promote the debt and now its unlikely buyers would need to purchase the debt within the present markets.

Final month banks have been reportedly on the hook for Citrix Methods $16.5 billion sale to Elliott and Vista Fairness, the place banks that underwrote debt backing the deal are collectively headed for $500M in losses when the debt was auctioned off at a reduction.

On Wednesday Tesla (TSLA) CEO Musk mentioned that he and different buyers are “clearly overpaying” for Twitter (TWTR).