Elon Musk's funding for the acquisition of the microblogging Twitter website involves a loan tied to Tesla's billion shares.
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Tesla (TSLA) - Investors and fans can breathe easily.
Since April 14 Elon Musk has announced a $ 44 billion bid for the social networking site Twitter, (TWTR) - That they have seen Tesla share price fluctuate.
In addition to Musk's concerns about a less-than-ideal electric car manufacturer, they are also concerned about the prospect of his financial withdrawal from Tesla.
Indeed, to support the Twitter transaction, the billionaire, whose assets are illegal, has secured a loan that includes a $ 12.5 billion loan linked to his Tesla shares.
This margin debt has strained Tesla shares; have lost about 29% of their value since the announcement of the Twitter agreement. This is because investors are wondering if Musk could sell more Tesla stocks than $ 8.5 billion already sold to support Twitter.
Musk lives in the center of Tesla. He is a visionary, products, marketing manager, sales manager, senior public relations officer. Tesla’s rise in meteoric stock market share is based on two factors: its vehicles and the efforts of serial entrepreneurs.
If Musk is less likely to get involved with Tesla, it is hard to see how investors will keep the full trust in the Austin company.
Musk Wants to Delete Margin Loan
The tech tycoon takes steps to reassure investors and fans.
He has already repaid the loan after receiving $ 7.1 billion in shares of a select group of investors including Oracle (ORCL) - Founder Larry Ellison, Sequoia Capital, Qatar Holding and Saudi Prince Al Waleed bin Talal Al Saud. , the current shareholder of Twitter.
Since the announcement, Musk has also secured another $ 1 billion equity bond, two sources told on condition of anonymity.
The billionaire and his advisers are currently in talks to secure additional equity obligations, which, along with popular financing, could curb borrowing and thus eliminate any financial risk for Musk and his creditors.
Preferred equity can be matured for 20 years and include a factor that allows interest to be paid at a rate of 14%, reports.
That interest rate will increase by 0.75 percent in the seventh, eighth and ninth years. It could also be set at a 10% interest rate and a warranty, Bloomberg said, citing people close to the matter.
