"Elon Musk's bankers are working on a potential financing plan after the merger of SpaceX and xAI that could trim some of the heavy interest costs that the billionaire racked up in recent years, according to people familiar with the matter. Musk built up a debt stack of almost $18 billion with his buyout of Twitter and the creation of his artificial-intelligence developer."
"Morgan Stanley, which led Musk's buyout of Twitter in 2022 and xAI's subsequent debt raising, is expected to take a leading role in any financing plan, said the people. Morgan Stanley is also one of the banks lined up to lead SpaceX's IPO, along with Goldman Sachs Group Inc., Bank of America Corp. and JPMorgan Chase & Co., Bloomberg previously reported. No final decisions have been made and details of the IPO could change."
Bankers are working on a potential financing plan after the merger of SpaceX and xAI that could lower heavy interest costs. Musk accumulated nearly $18 billion of debt from the Twitter buyout and the creation of xAI. The financing proposal is not final but would aim to reduce that expensive debt burden before an anticipated initial public offering later this year. Morgan Stanley, which led Musk's Twitter buyout and xAI's subsequent debt raising, is expected to play a leading role. Morgan Stanley is among banks lined up to lead SpaceX's IPO alongside Goldman Sachs, Bank of America and JPMorgan. No final decisions have been made.
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