Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt

939
62
Favorite

Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt

Bloomberg2022-10-08

Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

939

Report

Comment（62）

YJ Lee
·2022-10-10
Ok
Reply
Like
Report
Fold Replies
- YJ Lee:
  14
  2022-10-10
  Reply
  Report
- YJ Lee:
  13
  2022-10-10
  Reply
  Report
- YJ Lee:
  12
  2022-10-10
  Reply
  Report
View more 2 comments
Fumiyo
·2022-10-10
Like
Reply
1
Report
iceage
·2022-10-10
Ohhh
Reply
1
Report
Fold Replies
- iceage:
  nooo
  2022-10-10
  Reply
  Report
SPOT_ON
·2022-10-10
[Surprised] [Surprised] [Surprised] [Surprised]
Reply
4
Report
Fold Replies
- Fumiyo:
  ok
  2022-10-10
  Reply
  Report
Kiwii
·2022-10-09
Hi
Reply
3
Report
Fold Replies
- Kiwii:
  Yes
  2022-10-09
  Reply
  Report
KYBoo
·2022-10-09
Hhh
Reply
3
Report
Fold Replies
- KYBoo:
  ggg
  2022-10-09
  Reply
  Report
XguiX
·2022-10-09
Read
Reply
5
Report
Prosperity88
·2022-10-09
Well
Reply
5
Report
blessed_1
·2022-10-09
Ok
Reply
3
Report
Fold Replies
- BerryNat:
  wooo
  2022-10-09
  Reply
  Report
Desmond669
·2022-10-09
Yes
Reply
3
Report
LeonKoh
·2022-10-09
Ok
Reply
7
Report
Fold Replies
- Lgdnic:
  Ok
  2022-10-09
  Reply
  Report
- BenYSLim:
  Ok
  2022-10-09
  Reply
  Report
- Desmond669:
  Ok
  2022-10-09
  Reply
  Report
View more 1 comments
Cam20
·2022-10-09
Ok
Reply
9
Report
Fold Replies
- Squ00:
  Ok
  2022-10-09
  Reply
  Report
- Squ00:
  Ok
  2022-10-09
  Reply
  Report
- Squ00:
  Ok
  2022-10-09
  Reply
  Report
View more 2 comments
Michrich
·2022-10-09
K
Reply
4
Report
MrHuattt
·2022-10-09
Okay
Reply
2
Report
Fold Replies
- MrHuattt:
  Yes
  2022-10-09
  Reply
  Report
Llim
·2022-10-09
Like
Reply
4
Report
Fold Replies
- Louis7779:
  Pls like back my post
  2022-10-09
  Reply
  Report
- Michrich:
  K
  2022-10-09
  Reply
  Report
TSY123
·2022-10-09
Ok
Reply
3
Report
Nichktan
·2022-10-09
Like
Reply
1
Report
AlanChong
·2022-10-09
Ok
Reply
1
Report
Bodoh
·2022-10-09
Greed n stupidity are good friends
Reply
1
Report
tks_82
·2022-10-09
Like pls
Reply
7
Report
Fold Replies
- Nichktan:
  Ok
  2022-10-09
  Reply
  Report
- Kiki19:
  K
  2022-10-09
  Reply
  Report
- AlanChong:
  Ok
  2022-10-09
  Reply
  Report
View more 1 comments

Most Discussed

7x24

All

Terms and Conditions·Privacy Policy

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email：uservice@ttm.financial

{"i18n":{"language":"en_US"},"data":{"share":"https://ttm.financial/m/news/2273397323?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2022-10-08 10:44","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2273397323","market":"us","top_or_hot":-1,"title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","media":"Bloomberg","content":"<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4534","symbol_name":"瑞士信贷持仓","start_time":0,"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","article_id":"2273397323","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","pubTimestamp":1665197064,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4534":"瑞士信贷持仓","BK4579":"人工智能","BK4581":"高盛持仓","BK4504":"桥水持仓","BK4516":"特朗普概念","BAC":"美国银行","MS":"摩根士丹利","BARC.UK":"巴克莱银行","TWTR":"Twitter","BK4508":"社交媒体","BK4127":"投资银行业与经纪业"},"translate_title":"摩根士丹利领导的银行在Twitter债务上面临5亿美元损失","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MS":1,"TWTR":1,"BAC":0.9,"BARC.UK":0.9},"content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9914410177,"gmtCreate":1665355444099,"gmtModify":1676537589409,"author":{"id":"4108816210230400","authorId":"4108816210230400","name":"YJ Lee","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"4108816210230400","authorIdStr":"4108816210230400"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":14,"repostSize":0,"link":"https://ttm.financial/post/9914410177","repostId":2273397323,"repostType":4,"repost":{"id":"2273397323","pubTimestamp":1665197064,"share":"https://ttm.financial/m/news/2273397323?lang=&edition=fundamental","pubTime":"2022-10-08 10:44","market":"us","language":"en","title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","media":"Bloomberg","summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","content":"<html><head></head><body><ul><li>Banks are on the hook to provide financing, lawyers say</li><li>Potential losses could be even higher as debt markets sour</li></ul><p>When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.</p><p>Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.</p><p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.</p><p>Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.</p><p>Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.</p><p>Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.</p><p>That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.</p><p>Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.</p><h2>Way Out?</h2><p>Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.</p><p>The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson &amp; Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.</p><p>But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.</p><p>A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.</p><p>On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.</p><p>But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”</p><h2>Bonds, Loans</h2><p>The banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.</p><p>Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.</p><p>The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.</p><p>The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.</p><p>Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:</p><p>The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","BK4516":"特朗普概念","MS":"摩根士丹利","BK4508":"社交媒体","BAC":"美国银行","BK4127":"投资银行业与经纪业","BK4579":"人工智能","BARC.UK":"巴克莱银行","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2273397323","content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104282250,"gmtCreate":1665355627669,"gmtModify":1665355630823,"authorId":4108816210230400,"author":{"id":4108816210230400,"idStr":"4108816210230400","authorId":4108816210230400,"name":"YJ Lee","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914410177,"type":1,"supId":0,"prevId":0,"content":"14","text":"14","html":"14"},{"id":104282247,"gmtCreate":1665355620347,"gmtModify":1665355623818,"authorId":4108816210230400,"author":{"id":4108816210230400,"idStr":"4108816210230400","authorId":4108816210230400,"name":"YJ Lee","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914410177,"type":1,"supId":0,"prevId":0,"content":"13","text":"13","html":"13"},{"id":104282245,"gmtCreate":1665355614148,"gmtModify":1665355617799,"authorId":4108816210230400,"author":{"id":4108816210230400,"idStr":"4108816210230400","authorId":4108816210230400,"name":"YJ Lee","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914410177,"type":1,"supId":0,"prevId":0,"content":"12","text":"12","html":"12"},{"id":104282244,"gmtCreate":1665355606133,"gmtModify":1665355609780,"authorId":4108816210230400,"author":{"id":4108816210230400,"idStr":"4108816210230400","authorId":4108816210230400,"name":"YJ Lee","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914410177,"type":1,"supId":0,"prevId":0,"content":"11","text":"11","html":"11"},{"id":104282243,"gmtCreate":1665355598397,"gmtModify":1665355601719,"authorId":4108816210230400,"author":{"id":4108816210230400,"idStr":"4108816210230400","authorId":4108816210230400,"name":"YJ Lee","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914410177,"type":1,"supId":0,"prevId":0,"content":"10","text":"10","html":"10"}],"langContent":"EN"},{"id":9914439139,"gmtCreate":1665354055522,"gmtModify":1676537589161,"author":{"id":"3570336970209686","authorId":"3570336970209686","name":"Fumiyo","avatar":"https://static.tigerbbs.com/b65de2d6a23385f374374d427d29dd42","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3570336970209686","authorIdStr":"3570336970209686"},"htmlText":"Like&nbsp;","listText":"Like&nbsp;","text":"Like","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9914439139","repostId":2273397323,"repostType":4,"repost":{"id":"2273397323","pubTimestamp":1665197064,"share":"https://ttm.financial/m/news/2273397323?lang=&edition=fundamental","pubTime":"2022-10-08 10:44","market":"us","language":"en","title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","media":"Bloomberg","summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","content":"<html><head></head><body><ul><li>Banks are on the hook to provide financing, lawyers say</li><li>Potential losses could be even higher as debt markets sour</li></ul><p>When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.</p><p>Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.</p><p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.</p><p>Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.</p><p>Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.</p><p>Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.</p><p>That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.</p><p>Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.</p><h2>Way Out?</h2><p>Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.</p><p>The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson &amp; Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.</p><p>But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.</p><p>A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.</p><p>On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.</p><p>But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”</p><h2>Bonds, Loans</h2><p>The banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.</p><p>Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.</p><p>The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.</p><p>The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.</p><p>Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:</p><p>The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","BK4516":"特朗普概念","MS":"摩根士丹利","BK4508":"社交媒体","BAC":"美国银行","BK4127":"投资银行业与经纪业","BK4579":"人工智能","BARC.UK":"巴克莱银行","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2273397323","content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9914497591,"gmtCreate":1665353736413,"gmtModify":1676537589117,"author":{"id":"3582700442025714","authorId":"3582700442025714","name":"iceage","avatar":"https://static.tigerbbs.com/824cd9c998fb2ca537c1d47267e2f2bf","vip":1,"hat":"https://static.tigerbbs.com/0a8758340a08196056f8bc1e54805193","crmLevel":6,"crmLevelSwitch":0,"idStr":"3582700442025714","authorIdStr":"3582700442025714"},"htmlText":"Ohhh","listText":"Ohhh","text":"Ohhh","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9914497591","repostId":2273397323,"repostType":4,"repost":{"id":"2273397323","pubTimestamp":1665197064,"share":"https://ttm.financial/m/news/2273397323?lang=&edition=fundamental","pubTime":"2022-10-08 10:44","market":"us","language":"en","title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","media":"Bloomberg","summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","content":"<html><head></head><body><ul><li>Banks are on the hook to provide financing, lawyers say</li><li>Potential losses could be even higher as debt markets sour</li></ul><p>When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.</p><p>Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.</p><p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.</p><p>Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.</p><p>Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.</p><p>Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.</p><p>That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.</p><p>Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.</p><h2>Way Out?</h2><p>Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.</p><p>The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson &amp; Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.</p><p>But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.</p><p>A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.</p><p>On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.</p><p>But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”</p><h2>Bonds, Loans</h2><p>The banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.</p><p>Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.</p><p>The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.</p><p>The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.</p><p>Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:</p><p>The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","BK4516":"特朗普概念","MS":"摩根士丹利","BK4508":"社交媒体","BAC":"美国银行","BK4127":"投资银行业与经纪业","BK4579":"人工智能","BARC.UK":"巴克莱银行","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2273397323","content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104281959,"gmtCreate":1665353741354,"gmtModify":1665353745027,"authorId":3582700442025714,"author":{"id":3582700442025714,"idStr":"3582700442025714","authorId":3582700442025714,"name":"iceage","avatar":"https://static.tigerbbs.com/824cd9c998fb2ca537c1d47267e2f2bf","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-1","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Elite Trader","description":"Total number of securities or futures transactions reached 30","bigImgUrl":"https://static.tigerbbs.com/ab0f87127c854ce3191a752d57b46edc","smallImgUrl":"https://static.tigerbbs.com/c9835ce48b8c8743566d344ac7a7ba8c","grayImgUrl":"https://static.tigerbbs.com/76754b53ce7a90019f132c1d2fbc698f","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":"60.89%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":6,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914497591,"type":1,"supId":0,"prevId":0,"content":"<u>nooo</u>","text":"<u>nooo</u>","html":"<u>nooo</u>"}],"langContent":"EN"},{"id":9914491165,"gmtCreate":1665352038257,"gmtModify":1676537588924,"author":{"id":"3582922989777578","authorId":"3582922989777578","name":"SPOT_ON","avatar":"https://static.tigerbbs.com/080f029371339d9db26930961de6adb1","vip":1,"hat":"https://static.tigerbbs.com/a3dee1aa3a3a3c1814833a4d3f8a5669","crmLevel":4,"crmLevelSwitch":1,"idStr":"3582922989777578","authorIdStr":"3582922989777578"},"htmlText":"[Surprised]&nbsp;[Surprised]&nbsp;[Surprised]&nbsp;[Surprised]&nbsp;","listText":"[Surprised]&nbsp;[Surprised]&nbsp;[Surprised]&nbsp;[Surprised]&nbsp;","text":"[Surprised] [Surprised] [Surprised] [Surprised]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9914491165","repostId":2273397323,"repostType":4,"repost":{"id":"2273397323","pubTimestamp":1665197064,"share":"https://ttm.financial/m/news/2273397323?lang=&edition=fundamental","pubTime":"2022-10-08 10:44","market":"us","language":"en","title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","media":"Bloomberg","summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","content":"<html><head></head><body><ul><li>Banks are on the hook to provide financing, lawyers say</li><li>Potential losses could be even higher as debt markets sour</li></ul><p>When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.</p><p>Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.</p><p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.</p><p>Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.</p><p>Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.</p><p>Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.</p><p>That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.</p><p>Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.</p><h2>Way Out?</h2><p>Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.</p><p>The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson &amp; Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.</p><p>But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.</p><p>A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.</p><p>On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.</p><p>But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”</p><h2>Bonds, Loans</h2><p>The banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.</p><p>Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.</p><p>The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.</p><p>The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.</p><p>Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:</p><p>The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","BK4516":"特朗普概念","MS":"摩根士丹利","BK4508":"社交媒体","BAC":"美国银行","BK4127":"投资银行业与经纪业","BK4579":"人工智能","BARC.UK":"巴克莱银行","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2273397323","content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104281997,"gmtCreate":1665354062023,"gmtModify":1665354065245,"authorId":3570336970209686,"author":{"id":3570336970209686,"idStr":"3570336970209686","authorId":3570336970209686,"name":"Fumiyo","avatar":"https://static.tigerbbs.com/b65de2d6a23385f374374d427d29dd42","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914491165,"type":1,"supId":0,"prevId":0,"content":"<u>ok</u>","text":"<u>ok</u>","html":"<u>ok</u>"}],"langContent":"EN"},{"id":9914543636,"gmtCreate":1665328600826,"gmtModify":1676537588021,"author":{"id":"3579735899676546","authorId":"3579735899676546","name":"Kiwii","avatar":"https://community-static.tradeup.com/news/c31b2d8301c0e367c9f368c3506dad90","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3579735899676546","authorIdStr":"3579735899676546"},"htmlText":"Hi","listText":"Hi","text":"Hi","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9914543636","repostId":2273397323,"repostType":4,"repost":{"id":"2273397323","pubTimestamp":1665197064,"share":"https://ttm.financial/m/news/2273397323?lang=&edition=fundamental","pubTime":"2022-10-08 10:44","market":"us","language":"en","title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","media":"Bloomberg","summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","content":"<html><head></head><body><ul><li>Banks are on the hook to provide financing, lawyers say</li><li>Potential losses could be even higher as debt markets sour</li></ul><p>When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.</p><p>Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.</p><p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.</p><p>Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.</p><p>Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.</p><p>Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.</p><p>That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.</p><p>Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.</p><h2>Way Out?</h2><p>Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.</p><p>The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson &amp; Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.</p><p>But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.</p><p>A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.</p><p>On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.</p><p>But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”</p><h2>Bonds, Loans</h2><p>The banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.</p><p>Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.</p><p>The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.</p><p>The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.</p><p>Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:</p><p>The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","BK4516":"特朗普概念","MS":"摩根士丹利","BK4508":"社交媒体","BAC":"美国银行","BK4127":"投资银行业与经纪业","BK4579":"人工智能","BARC.UK":"巴克莱银行","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2273397323","content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104280873,"gmtCreate":1665328609857,"gmtModify":1665328613085,"authorId":3579735899676546,"author":{"id":3579735899676546,"idStr":"3579735899676546","authorId":3579735899676546,"name":"Kiwii","avatar":"https://community-static.tradeup.com/news/c31b2d8301c0e367c9f368c3506dad90","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914543636,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Yes</span>","text":"<span class=\"s1\">Yes</span>","html":"<span class=\"s1\">Yes</span>"}],"langContent":"EN"},{"id":9914529848,"gmtCreate":1665321720984,"gmtModify":1676537587408,"author":{"id":"3581501341719005","authorId":"3581501341719005","name":"KYBoo","avatar":"https://static.tigerbbs.com/43072e3bdf1be8a6c0fb9e0d7c8a0558","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3581501341719005","authorIdStr":"3581501341719005"},"htmlText":"Hhh","listText":"Hhh","text":"Hhh","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9914529848","repostId":2273397323,"repostType":4,"repost":{"id":"2273397323","pubTimestamp":1665197064,"share":"https://ttm.financial/m/news/2273397323?lang=&edition=fundamental","pubTime":"2022-10-08 10:44","market":"us","language":"en","title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","media":"Bloomberg","summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","content":"<html><head></head><body><ul><li>Banks are on the hook to provide financing, lawyers say</li><li>Potential losses could be even higher as debt markets sour</li></ul><p>When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.</p><p>Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.</p><p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.</p><p>Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.</p><p>Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.</p><p>Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.</p><p>That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.</p><p>Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.</p><h2>Way Out?</h2><p>Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.</p><p>The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson &amp; Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.</p><p>But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.</p><p>A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.</p><p>On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.</p><p>But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”</p><h2>Bonds, Loans</h2><p>The banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.</p><p>Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.</p><p>The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.</p><p>The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.</p><p>Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:</p><p>The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","BK4516":"特朗普概念","MS":"摩根士丹利","BK4508":"社交媒体","BAC":"美国银行","BK4127":"投资银行业与经纪业","BK4579":"人工智能","BARC.UK":"巴克莱银行","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2273397323","content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104280003,"gmtCreate":1665321725936,"gmtModify":1665321729947,"authorId":3581501341719005,"author":{"id":3581501341719005,"idStr":"3581501341719005","authorId":3581501341719005,"name":"KYBoo","avatar":"https://static.tigerbbs.com/43072e3bdf1be8a6c0fb9e0d7c8a0558","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914529848,"type":1,"supId":0,"prevId":0,"content":"<u>ggg</u>","text":"<u>ggg</u>","html":"<u>ggg</u>"}],"langContent":"EN"},{"id":9914512857,"gmtCreate":1665311010979,"gmtModify":1676537586442,"author":{"id":"4090558886965400","authorId":"4090558886965400","name":"XguiX","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"4090558886965400","authorIdStr":"4090558886965400"},"htmlText":"Read","listText":"Read","text":"Read","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9914512857","repostId":2273397323,"repostType":4,"repost":{"id":"2273397323","pubTimestamp":1665197064,"share":"https://ttm.financial/m/news/2273397323?lang=&edition=fundamental","pubTime":"2022-10-08 10:44","market":"us","language":"en","title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","media":"Bloomberg","summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","content":"<html><head></head><body><ul><li>Banks are on the hook to provide financing, lawyers say</li><li>Potential losses could be even higher as debt markets sour</li></ul><p>When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.</p><p>Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.</p><p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.</p><p>Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.</p><p>Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.</p><p>Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.</p><p>That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.</p><p>Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.</p><h2>Way Out?</h2><p>Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.</p><p>The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson &amp; Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.</p><p>But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.</p><p>A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.</p><p>On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.</p><p>But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”</p><h2>Bonds, Loans</h2><p>The banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.</p><p>Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.</p><p>The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.</p><p>The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.</p><p>Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:</p><p>The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","BK4516":"特朗普概念","MS":"摩根士丹利","BK4508":"社交媒体","BAC":"美国银行","BK4127":"投资银行业与经纪业","BK4579":"人工智能","BARC.UK":"巴克莱银行","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2273397323","content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9914592506,"gmtCreate":1665302641205,"gmtModify":1676537585542,"author":{"id":"3569644599778803","authorId":"3569644599778803","name":"Prosperity88","avatar":"https://static.tigerbbs.com/673e75041219828ee5fce0d5b00ebbfe","vip":1,"crmLevel":6,"crmLevelSwitch":1,"idStr":"3569644599778803","authorIdStr":"3569644599778803"},"htmlText":"Well","listText":"Well","text":"Well","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9914592506","repostId":2273397323,"repostType":4,"repost":{"id":"2273397323","pubTimestamp":1665197064,"share":"https://ttm.financial/m/news/2273397323?lang=&edition=fundamental","pubTime":"2022-10-08 10:44","market":"us","language":"en","title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","media":"Bloomberg","summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","content":"<html><head></head><body><ul><li>Banks are on the hook to provide financing, lawyers say</li><li>Potential losses could be even higher as debt markets sour</li></ul><p>When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.</p><p>Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.</p><p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.</p><p>Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.</p><p>Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.</p><p>Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.</p><p>That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.</p><p>Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.</p><h2>Way Out?</h2><p>Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.</p><p>The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson &amp; Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.</p><p>But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.</p><p>A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.</p><p>On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.</p><p>But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”</p><h2>Bonds, Loans</h2><p>The banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.</p><p>Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.</p><p>The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.</p><p>The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.</p><p>Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:</p><p>The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","BK4516":"特朗普概念","MS":"摩根士丹利","BK4508":"社交媒体","BAC":"美国银行","BK4127":"投资银行业与经纪业","BK4579":"人工智能","BARC.UK":"巴克莱银行","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2273397323","content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9914258370,"gmtCreate":1665291611290,"gmtModify":1676537583802,"author":{"id":"4112410321254552","authorId":"4112410321254552","name":"blessed_1","avatar":"https://community-static.tradeup.com/news/71622697830d9517eb67a61917d8a95f","vip":1,"hat":"https://static.tigerbbs.com/b073a07f77dbe6b3bec6b12311fde6bd","crmLevel":4,"crmLevelSwitch":1,"idStr":"4112410321254552","authorIdStr":"4112410321254552"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9914258370","repostId":2273397323,"repostType":4,"repost":{"id":"2273397323","pubTimestamp":1665197064,"share":"https://ttm.financial/m/news/2273397323?lang=&edition=fundamental","pubTime":"2022-10-08 10:44","market":"us","language":"en","title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","media":"Bloomberg","summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","content":"<html><head></head><body><ul><li>Banks are on the hook to provide financing, lawyers say</li><li>Potential losses could be even higher as debt markets sour</li></ul><p>When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.</p><p>Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.</p><p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.</p><p>Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.</p><p>Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.</p><p>Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.</p><p>That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.</p><p>Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.</p><h2>Way Out?</h2><p>Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.</p><p>The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson &amp; Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.</p><p>But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.</p><p>A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.</p><p>On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.</p><p>But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”</p><h2>Bonds, Loans</h2><p>The banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.</p><p>Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.</p><p>The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.</p><p>The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.</p><p>Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:</p><p>The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","BK4516":"特朗普概念","MS":"摩根士丹利","BK4508":"社交媒体","BAC":"美国银行","BK4127":"投资银行业与经纪业","BK4579":"人工智能","BARC.UK":"巴克莱银行","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2273397323","content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104278291,"gmtCreate":1665302010469,"gmtModify":1665302014315,"authorId":4087986020499840,"author":{"id":4087986020499840,"idStr":"4087986020499840","authorId":4087986020499840,"name":"BerryNat","avatar":"https://static.tigerbbs.com/27333e490249edd9b1054f0311c8584c","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914258370,"type":1,"supId":0,"prevId":0,"content":"<u>wooo</u>","text":"<u>wooo</u>","html":"<u>wooo</u>"}],"langContent":"EN"},{"id":9914269797,"gmtCreate":1665287902219,"gmtModify":1676537583084,"author":{"id":"3562118563279867","authorId":"3562118563279867","name":"Desmond669","avatar":"https://static.tigerbbs.com/e2484115c94d3471cb46f20ea7598b4a","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3562118563279867","authorIdStr":"3562118563279867"},"htmlText":"Yes","listText":"Yes","text":"Yes","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9914269797","repostId":2273397323,"repostType":4,"repost":{"id":"2273397323","pubTimestamp":1665197064,"share":"https://ttm.financial/m/news/2273397323?lang=&edition=fundamental","pubTime":"2022-10-08 10:44","market":"us","language":"en","title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","media":"Bloomberg","summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","content":"<html><head></head><body><ul><li>Banks are on the hook to provide financing, lawyers say</li><li>Potential losses could be even higher as debt markets sour</li></ul><p>When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.</p><p>Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.</p><p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.</p><p>Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.</p><p>Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.</p><p>Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.</p><p>That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.</p><p>Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.</p><h2>Way Out?</h2><p>Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.</p><p>The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson &amp; Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.</p><p>But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.</p><p>A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.</p><p>On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.</p><p>But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”</p><h2>Bonds, Loans</h2><p>The banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.</p><p>Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.</p><p>The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.</p><p>The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.</p><p>Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:</p><p>The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","BK4516":"特朗普概念","MS":"摩根士丹利","BK4508":"社交媒体","BAC":"美国银行","BK4127":"投资银行业与经纪业","BK4579":"人工智能","BARC.UK":"巴克莱银行","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2273397323","content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9914230709,"gmtCreate":1665283362001,"gmtModify":1676537582024,"author":{"id":"4122195213805972","authorId":"4122195213805972","name":"LeonKoh","avatar":"https://community-static.tradeup.com/news/11b59b5e3b3c7f80bbb18d37db3f4b0a","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"4122195213805972","authorIdStr":"4122195213805972"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":4,"repostSize":0,"link":"https://ttm.financial/post/9914230709","repostId":2273397323,"repostType":4,"repost":{"id":"2273397323","pubTimestamp":1665197064,"share":"https://ttm.financial/m/news/2273397323?lang=&edition=fundamental","pubTime":"2022-10-08 10:44","market":"us","language":"en","title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","media":"Bloomberg","summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","content":"<html><head></head><body><ul><li>Banks are on the hook to provide financing, lawyers say</li><li>Potential losses could be even higher as debt markets sour</li></ul><p>When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.</p><p>Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.</p><p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.</p><p>Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.</p><p>Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.</p><p>Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.</p><p>That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.</p><p>Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.</p><h2>Way Out?</h2><p>Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.</p><p>The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson &amp; Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.</p><p>But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.</p><p>A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.</p><p>On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.</p><p>But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”</p><h2>Bonds, Loans</h2><p>The banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.</p><p>Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.</p><p>The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.</p><p>The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.</p><p>Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:</p><p>The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","BK4516":"特朗普概念","MS":"摩根士丹利","BK4508":"社交媒体","BAC":"美国银行","BK4127":"投资银行业与经纪业","BK4579":"人工智能","BARC.UK":"巴克莱银行","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2273397323","content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104279081,"gmtCreate":1665310409316,"gmtModify":1665310412665,"authorId":3584100767586786,"author":{"id":3584100767586786,"idStr":"3584100767586786","authorId":3584100767586786,"name":"Lgdnic","avatar":"https://static.tigerbbs.com/493d41d71270a52770b856ed4e663073","vip":1,"crmLevel":2,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914230709,"type":1,"supId":104276195,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"},{"id":104276195,"gmtCreate":1665290362350,"gmtModify":1665290365617,"authorId":3584102971420376,"author":{"id":3584102971420376,"idStr":"3584102971420376","authorId":3584102971420376,"name":"BenYSLim","avatar":"https://static.tigerbbs.com/94898501beebba354d54215388e5f9d1","vip":1,"currentWearingBadge":{"badgeId":"a83d7582f45846ffbccbce770ce65d84-1","templateUuid":"a83d7582f45846ffbccbce770ce65d84","name":"Real Trader","description":"Completed a transaction","bigImgUrl":"https://static.tigerbbs.com/2e08a1cc2087a1de93402c2c290fa65b","smallImgUrl":"https://static.tigerbbs.com/4504a6397ce1137932d56e5f4ce27166","grayImgUrl":"https://static.tigerbbs.com/4b22c79415b4cd6e3d8ebc4a0fa32604","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914230709,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"},{"id":104275666,"gmtCreate":1665287893712,"gmtModify":1665287897490,"authorId":3562118563279867,"author":{"id":3562118563279867,"idStr":"3562118563279867","authorId":3562118563279867,"name":"Desmond669","avatar":"https://static.tigerbbs.com/e2484115c94d3471cb46f20ea7598b4a","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.05.31","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914230709,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"},{"id":104275362,"gmtCreate":1665286543125,"gmtModify":1665286546756,"authorId":3562791266647459,"author":{"id":3562791266647459,"idStr":"3562791266647459","authorId":3562791266647459,"name":"atsc","avatar":"https://static.tigerbbs.com/9ec47b1c36e59ba1ef8caac8ab619319","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-3","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Legendary Trader","description":"Total number of securities or futures transactions reached 300","bigImgUrl":"https://static.tigerbbs.com/656db16598a0b8f21429e10d6c1cb033","smallImgUrl":"https://static.tigerbbs.com/03f10910d4dd9234f9b5702a3342193a","grayImgUrl":"https://static.tigerbbs.com/0c767e35268feb729d50d3fa9a386c5a","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.08.11","exceedPercentage":"93.44%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":4,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914230709,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"}],"langContent":"EN"},{"id":9914295686,"gmtCreate":1665282930845,"gmtModify":1676537581920,"author":{"id":"3586053412837856","authorId":"3586053412837856","name":"Cam20","avatar":"https://static.tigerbbs.com/037da9ce01a8e834173bfb42cccaa40f","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3586053412837856","authorIdStr":"3586053412837856"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":9,"commentSize":14,"repostSize":0,"link":"https://ttm.financial/post/9914295686","repostId":2273397323,"repostType":4,"repost":{"id":"2273397323","pubTimestamp":1665197064,"share":"https://ttm.financial/m/news/2273397323?lang=&edition=fundamental","pubTime":"2022-10-08 10:44","market":"us","language":"en","title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","media":"Bloomberg","summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","content":"<html><head></head><body><ul><li>Banks are on the hook to provide financing, lawyers say</li><li>Potential losses could be even higher as debt markets sour</li></ul><p>When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.</p><p>Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.</p><p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.</p><p>Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.</p><p>Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.</p><p>Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.</p><p>That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.</p><p>Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.</p><h2>Way Out?</h2><p>Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.</p><p>The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson &amp; Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.</p><p>But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.</p><p>A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.</p><p>On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.</p><p>But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”</p><h2>Bonds, Loans</h2><p>The banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.</p><p>Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.</p><p>The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.</p><p>The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.</p><p>Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:</p><p>The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","BK4516":"特朗普概念","MS":"摩根士丹利","BK4508":"社交媒体","BAC":"美国银行","BK4127":"投资银行业与经纪业","BK4579":"人工智能","BARC.UK":"巴克莱银行","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2273397323","content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104275113,"gmtCreate":1665285403215,"gmtModify":1665285406785,"authorId":3581921108389483,"author":{"id":3581921108389483,"idStr":"3581921108389483","authorId":3581921108389483,"name":"Squ00","avatar":"https://community-static.tradeup.com/news/c532dee28e4fc99a9cc34fb3b9649140","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.01.15","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914295686,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"},{"id":104275101,"gmtCreate":1665285337377,"gmtModify":1665285340685,"authorId":3581921108389483,"author":{"id":3581921108389483,"idStr":"3581921108389483","authorId":3581921108389483,"name":"Squ00","avatar":"https://community-static.tradeup.com/news/c532dee28e4fc99a9cc34fb3b9649140","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.01.15","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914295686,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"},{"id":104275039,"gmtCreate":1665285127139,"gmtModify":1665285131473,"authorId":3581921108389483,"author":{"id":3581921108389483,"idStr":"3581921108389483","authorId":3581921108389483,"name":"Squ00","avatar":"https://community-static.tradeup.com/news/c532dee28e4fc99a9cc34fb3b9649140","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.01.15","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914295686,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"},{"id":104275013,"gmtCreate":1665285082158,"gmtModify":1665285086236,"authorId":3581921108389483,"author":{"id":3581921108389483,"idStr":"3581921108389483","authorId":3581921108389483,"name":"Squ00","avatar":"https://community-static.tradeup.com/news/c532dee28e4fc99a9cc34fb3b9649140","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.01.15","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914295686,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"},{"id":104274976,"gmtCreate":1665285003937,"gmtModify":1665285007220,"authorId":3581921108389483,"author":{"id":3581921108389483,"idStr":"3581921108389483","authorId":3581921108389483,"name":"Squ00","avatar":"https://community-static.tradeup.com/news/c532dee28e4fc99a9cc34fb3b9649140","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.01.15","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914295686,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"}],"langContent":"EN"},{"id":9914292966,"gmtCreate":1665282753555,"gmtModify":1676537581887,"author":{"id":"3582343271957983","authorId":"3582343271957983","name":"Michrich","avatar":"https://static.tigerbbs.com/8b1a28d47569c69731121b5b5a424aaf","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"3582343271957983","authorIdStr":"3582343271957983"},"htmlText":"K","listText":"K","text":"K","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9914292966","repostId":2273397323,"repostType":4,"repost":{"id":"2273397323","pubTimestamp":1665197064,"share":"https://ttm.financial/m/news/2273397323?lang=&edition=fundamental","pubTime":"2022-10-08 10:44","market":"us","language":"en","title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","media":"Bloomberg","summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","content":"<html><head></head><body><ul><li>Banks are on the hook to provide financing, lawyers say</li><li>Potential losses could be even higher as debt markets sour</li></ul><p>When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.</p><p>Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.</p><p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.</p><p>Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.</p><p>Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.</p><p>Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.</p><p>That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.</p><p>Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.</p><h2>Way Out?</h2><p>Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.</p><p>The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson &amp; Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.</p><p>But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.</p><p>A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.</p><p>On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.</p><p>But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”</p><h2>Bonds, Loans</h2><p>The banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.</p><p>Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.</p><p>The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.</p><p>The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.</p><p>Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:</p><p>The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","BK4516":"特朗普概念","MS":"摩根士丹利","BK4508":"社交媒体","BAC":"美国银行","BK4127":"投资银行业与经纪业","BK4579":"人工智能","BARC.UK":"巴克莱银行","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2273397323","content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9914290312,"gmtCreate":1665282281536,"gmtModify":1676537581681,"author":{"id":"4089116574465250","authorId":"4089116574465250","name":"MrHuattt","avatar":"https://community-static.tradeup.com/news/e67f8f8c2b0192fadc4cd499a84e6c8b","vip":1,"crmLevel":5,"crmLevelSwitch":1,"idStr":"4089116574465250","authorIdStr":"4089116574465250"},"htmlText":"Okay","listText":"Okay","text":"Okay","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9914290312","repostId":2273397323,"repostType":4,"repost":{"id":"2273397323","pubTimestamp":1665197064,"share":"https://ttm.financial/m/news/2273397323?lang=&edition=fundamental","pubTime":"2022-10-08 10:44","market":"us","language":"en","title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","media":"Bloomberg","summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","content":"<html><head></head><body><ul><li>Banks are on the hook to provide financing, lawyers say</li><li>Potential losses could be even higher as debt markets sour</li></ul><p>When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.</p><p>Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.</p><p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.</p><p>Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.</p><p>Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.</p><p>Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.</p><p>That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.</p><p>Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.</p><h2>Way Out?</h2><p>Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.</p><p>The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson &amp; Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.</p><p>But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.</p><p>A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.</p><p>On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.</p><p>But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”</p><h2>Bonds, Loans</h2><p>The banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.</p><p>Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.</p><p>The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.</p><p>The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.</p><p>Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:</p><p>The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","BK4516":"特朗普概念","MS":"摩根士丹利","BK4508":"社交媒体","BAC":"美国银行","BK4127":"投资银行业与经纪业","BK4579":"人工智能","BARC.UK":"巴克莱银行","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2273397323","content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104273513,"gmtCreate":1665282285190,"gmtModify":1665282288814,"authorId":4089116574465250,"author":{"id":4089116574465250,"idStr":"4089116574465250","authorId":4089116574465250,"name":"MrHuattt","avatar":"https://community-static.tradeup.com/news/e67f8f8c2b0192fadc4cd499a84e6c8b","vip":1,"crmLevel":5,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914290312,"type":1,"supId":0,"prevId":0,"content":"<u>Yes</u>","text":"<u>Yes</u>","html":"<u>Yes</u>"}],"langContent":"EN"},{"id":9914205672,"gmtCreate":1665282036696,"gmtModify":1676537581568,"author":{"id":"4105239963331670","authorId":"4105239963331670","name":"Llim","avatar":"https://community-static.tradeup.com/news/ebdd6aa492c9d80d8a2c1a18334bff87","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"4105239963331670","authorIdStr":"4105239963331670"},"htmlText":"Like&nbsp;","listText":"Like&nbsp;","text":"Like","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/9914205672","repostId":2273397323,"repostType":4,"repost":{"id":"2273397323","pubTimestamp":1665197064,"share":"https://ttm.financial/m/news/2273397323?lang=&edition=fundamental","pubTime":"2022-10-08 10:44","market":"us","language":"en","title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","media":"Bloomberg","summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","content":"<html><head></head><body><ul><li>Banks are on the hook to provide financing, lawyers say</li><li>Potential losses could be even higher as debt markets sour</li></ul><p>When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.</p><p>Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.</p><p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.</p><p>Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.</p><p>Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.</p><p>Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.</p><p>That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.</p><p>Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.</p><h2>Way Out?</h2><p>Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.</p><p>The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson &amp; Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.</p><p>But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.</p><p>A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.</p><p>On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.</p><p>But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”</p><h2>Bonds, Loans</h2><p>The banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.</p><p>Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.</p><p>The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.</p><p>The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.</p><p>Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:</p><p>The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","BK4516":"特朗普概念","MS":"摩根士丹利","BK4508":"社交媒体","BAC":"美国银行","BK4127":"投资银行业与经纪业","BK4579":"人工智能","BARC.UK":"巴克莱银行","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2273397323","content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104276252,"gmtCreate":1665290695866,"gmtModify":1665290699462,"authorId":3579095725705542,"author":{"id":3579095725705542,"idStr":"3579095725705542","authorId":3579095725705542,"name":"Louis7779","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914205672,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Pls like back my post<span class=\"Apple-converted-space\"> </span></span>","text":"<span class=\"s1\">Pls like back my post<span class=\"Apple-converted-space\"> </span></span>","html":"<span class=\"s1\">Pls like back my post<span class=\"Apple-converted-space\"> </span></span>"},{"id":104273792,"gmtCreate":1665282761940,"gmtModify":1665282765427,"authorId":3582343271957983,"author":{"id":3582343271957983,"idStr":"3582343271957983","authorId":3582343271957983,"name":"Michrich","avatar":"https://static.tigerbbs.com/8b1a28d47569c69731121b5b5a424aaf","vip":1,"currentWearingBadge":{"badgeId":"44212b71d0be4ec88898348dbe882e03-1","templateUuid":"44212b71d0be4ec88898348dbe882e03","name":"Boss Tiger","description":"The transaction amount of the securities account reaches $100,000","bigImgUrl":"https://static.tigerbbs.com/c8dfc27c1ee0e25db1c93e9d0b641101","smallImgUrl":"https://static.tigerbbs.com/f43908c142f8a33c78f5bdf0e2897488","grayImgUrl":"https://static.tigerbbs.com/82165ff19cb8a786e8919f92acee5213","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.07.14","exceedPercentage":"60.50%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1101},"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914205672,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">K</span>","text":"<span class=\"s1\">K</span>","html":"<span class=\"s1\">K</span>"}],"langContent":"EN"},{"id":9914200372,"gmtCreate":1665281267096,"gmtModify":1676537581268,"author":{"id":"3583665662213187","authorId":"3583665662213187","name":"TSY123","avatar":"https://static.tigerbbs.com/af38fbc4f07efb7ae9b5ebd03aa4b79b","vip":1,"crmLevel":8,"crmLevelSwitch":0,"idStr":"3583665662213187","authorIdStr":"3583665662213187"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9914200372","repostId":2273397323,"repostType":4,"repost":{"id":"2273397323","pubTimestamp":1665197064,"share":"https://ttm.financial/m/news/2273397323?lang=&edition=fundamental","pubTime":"2022-10-08 10:44","market":"us","language":"en","title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","media":"Bloomberg","summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","content":"<html><head></head><body><ul><li>Banks are on the hook to provide financing, lawyers say</li><li>Potential losses could be even higher as debt markets sour</li></ul><p>When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.</p><p>Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.</p><p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.</p><p>Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.</p><p>Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.</p><p>Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.</p><p>That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.</p><p>Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.</p><h2>Way Out?</h2><p>Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.</p><p>The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson &amp; Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.</p><p>But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.</p><p>A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.</p><p>On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.</p><p>But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”</p><h2>Bonds, Loans</h2><p>The banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.</p><p>Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.</p><p>The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.</p><p>The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.</p><p>Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:</p><p>The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","BK4516":"特朗普概念","MS":"摩根士丹利","BK4508":"社交媒体","BAC":"美国银行","BK4127":"投资银行业与经纪业","BK4579":"人工智能","BARC.UK":"巴克莱银行","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2273397323","content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9914676228,"gmtCreate":1665280845464,"gmtModify":1676537581123,"author":{"id":"3567067978989911","authorId":"3567067978989911","name":"Nichktan","avatar":"https://static.tigerbbs.com/73a93daf14236dfaeabaf3ea0b82fe4d","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3567067978989911","authorIdStr":"3567067978989911"},"htmlText":"Like","listText":"Like","text":"Like","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9914676228","repostId":2273397323,"repostType":4,"repost":{"id":"2273397323","pubTimestamp":1665197064,"share":"https://ttm.financial/m/news/2273397323?lang=&edition=fundamental","pubTime":"2022-10-08 10:44","market":"us","language":"en","title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","media":"Bloomberg","summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","content":"<html><head></head><body><ul><li>Banks are on the hook to provide financing, lawyers say</li><li>Potential losses could be even higher as debt markets sour</li></ul><p>When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.</p><p>Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.</p><p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.</p><p>Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.</p><p>Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.</p><p>Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.</p><p>That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.</p><p>Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.</p><h2>Way Out?</h2><p>Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.</p><p>The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson &amp; Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.</p><p>But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.</p><p>A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.</p><p>On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.</p><p>But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”</p><h2>Bonds, Loans</h2><p>The banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.</p><p>Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.</p><p>The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.</p><p>The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.</p><p>Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:</p><p>The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","BK4516":"特朗普概念","MS":"摩根士丹利","BK4508":"社交媒体","BAC":"美国银行","BK4127":"投资银行业与经纪业","BK4579":"人工智能","BARC.UK":"巴克莱银行","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2273397323","content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9914656518,"gmtCreate":1665278414435,"gmtModify":1676537580470,"author":{"id":"4125148185432112","authorId":"4125148185432112","name":"AlanChong","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"hat":"https://static.tigerbbs.com/a3dee1aa3a3a3c1814833a4d3f8a5669","crmLevel":4,"crmLevelSwitch":0,"idStr":"4125148185432112","authorIdStr":"4125148185432112"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9914656518","repostId":2273397323,"repostType":4,"repost":{"id":"2273397323","pubTimestamp":1665197064,"share":"https://ttm.financial/m/news/2273397323?lang=&edition=fundamental","pubTime":"2022-10-08 10:44","market":"us","language":"en","title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","media":"Bloomberg","summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","content":"<html><head></head><body><ul><li>Banks are on the hook to provide financing, lawyers say</li><li>Potential losses could be even higher as debt markets sour</li></ul><p>When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.</p><p>Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.</p><p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.</p><p>Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.</p><p>Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.</p><p>Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.</p><p>That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.</p><p>Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.</p><h2>Way Out?</h2><p>Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.</p><p>The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson &amp; Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.</p><p>But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.</p><p>A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.</p><p>On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.</p><p>But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”</p><h2>Bonds, Loans</h2><p>The banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.</p><p>Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.</p><p>The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.</p><p>The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.</p><p>Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:</p><p>The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","BK4516":"特朗普概念","MS":"摩根士丹利","BK4508":"社交媒体","BAC":"美国银行","BK4127":"投资银行业与经纪业","BK4579":"人工智能","BARC.UK":"巴克莱银行","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2273397323","content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9914659027,"gmtCreate":1665277947069,"gmtModify":1676537580340,"author":{"id":"3559859558754319","authorId":"3559859558754319","name":"Bodoh","avatar":"https://static.tigerbbs.com/349218ea2852130ca86ce660b4aa2d59","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3559859558754319","authorIdStr":"3559859558754319"},"htmlText":"Greed n stupidity are good friends&nbsp;","listText":"Greed n stupidity are good friends&nbsp;","text":"Greed n stupidity are good friends","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9914659027","repostId":2273397323,"repostType":4,"repost":{"id":"2273397323","pubTimestamp":1665197064,"share":"https://ttm.financial/m/news/2273397323?lang=&edition=fundamental","pubTime":"2022-10-08 10:44","market":"us","language":"en","title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","media":"Bloomberg","summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","content":"<html><head></head><body><ul><li>Banks are on the hook to provide financing, lawyers say</li><li>Potential losses could be even higher as debt markets sour</li></ul><p>When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.</p><p>Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.</p><p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.</p><p>Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.</p><p>Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.</p><p>Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.</p><p>That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.</p><p>Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.</p><h2>Way Out?</h2><p>Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.</p><p>The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson &amp; Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.</p><p>But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.</p><p>A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.</p><p>On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.</p><p>But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”</p><h2>Bonds, Loans</h2><p>The banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.</p><p>Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.</p><p>The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.</p><p>The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.</p><p>Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:</p><p>The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","BK4516":"特朗普概念","MS":"摩根士丹利","BK4508":"社交媒体","BAC":"美国银行","BK4127":"投资银行业与经纪业","BK4579":"人工智能","BARC.UK":"巴克莱银行","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2273397323","content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9914626549,"gmtCreate":1665277294181,"gmtModify":1676537580194,"author":{"id":"3581754084854007","authorId":"3581754084854007","name":"tks_82","avatar":"https://community-static.tradeup.com/news/3547658cb0a496157138bc30326aa3d7","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":1,"crmLevelSwitch":1,"idStr":"3581754084854007","authorIdStr":"3581754084854007"},"htmlText":"Like pls","listText":"Like pls","text":"Like pls","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":4,"repostSize":0,"link":"https://ttm.financial/post/9914626549","repostId":2273397323,"repostType":4,"repost":{"id":"2273397323","pubTimestamp":1665197064,"share":"https://ttm.financial/m/news/2273397323?lang=&edition=fundamental","pubTime":"2022-10-08 10:44","market":"us","language":"en","title":"Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt","url":"https://stock-news.laohu8.com/highlight/detail?id=2273397323","media":"Bloomberg","summary":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt","content":"<html><head></head><body><ul><li>Banks are on the hook to provide financing, lawyers say</li><li>Potential losses could be even higher as debt markets sour</li></ul><p>When banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.</p><p>Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.</p><p>“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.</p><p>Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.</p><p>Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.</p><p>Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.</p><p>That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.</p><p>Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.</p><h2>Way Out?</h2><p>Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.</p><p>The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson &amp; Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.</p><p>But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.</p><p>A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.</p><p>On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.</p><p>But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”</p><h2>Bonds, Loans</h2><p>The banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.</p><p>Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.</p><p>The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.</p><p>The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.</p><p>Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:</p><p>The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley-Led Banks Face $500 Million Loss on Twitter Debt\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-10-08 10:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase ...</p>\n\n<a href=\"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","BK4516":"特朗普概念","MS":"摩根士丹利","BK4508":"社交媒体","BAC":"美国银行","BK4127":"投资银行业与经纪业","BK4579":"人工智能","BARC.UK":"巴克莱银行","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓"},"source_url":"https://finance.yahoo.com/news/morgan-stanley-led-banks-face-215352792.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2273397323","content_text":"Banks are on the hook to provide financing, lawyers sayPotential losses could be even higher as debt markets sourWhen banks led by Morgan Stanley agreed in April to help finance Elon Musk’s purchase of Twitter Inc., they were eager to aid an important client, the richest person in the world. Now neither Musk nor the banks have an obvious way to wriggle out of it.Lenders that also include Bank of America Corp., Barclays Plc and Mitsubishi UFJ Financial Group Inc. committed to provide $13 billion of debt financing for the deal. Their losses would amount to $500 million or more if the debt were to be sold now, according to Bloomberg calculations. They agreed to fund the purchase whether or not they were able to offload the debt to outside investors, according to public documents and lawyers who have looked at them.“I think that those banks would like to get out of it, I think the deal makes less sense for them now, and that the debt will be harder to syndicate to investors,” said Howard Fischer, partner at law firm Moses Singer. But Fischer, a former senior trial counsel at the Securities and Exchange Commission who isn’t involved in Twitter, said there’s no legal basis for them to back out.Junk bond and leveraged loan yields have surged since April, meaning that banks will lose money from having agreed to provide financing at lower yields than the market will accept now. Any pain the banks bear from this deal comes as lenders have already sustained billions of dollars of writedowns and losses this year after central banks worldwide have started hiking rates to tame inflation.Even if the banks could find buyers for Twitter debt in the market now, which is far from certain, selling bonds and loans tied to the deal probably wouldn’t be possible before the buyout closes.Banks have a pipeline of around $50 billion of debt financings they’ve committed to provide in the coming months, according to Deutsche Bank AG estimates. While usually banks would sell bonds and loans to fund those deals, investors are less eager to buy now than they were toward the beginning of the year, and offloading this debt will be hard.That’s forcing banks to provide the financing themselves on a number of deals, a strain on their earnings and capital requirements. For example, lenders including Bank of America and Barclays expect to have to fund $8.35 billion of debt for the leveraged buyout of Nielsen Holdings next week, Bloomberg reported on Tuesday.Representatives for Morgan Stanley, Bank of America, Barclays, MUFG and Twitter declined to comment. A representative for Musk did not immediately respond to a request for comment.Way Out?Banks may not be able to back out of the Twitter deal, but Musk has been trying to. Twitter said on Thursday that it’s dubious of the billionaire’s promises to close on the transaction. The company said that a banker involved in the debt financing testified earlier Thursday that Musk had yet to send them a borrowing notice, and had otherwise not communicated to them that he intended to close the deal.The lack of a borrowing notice on its own isn’t necessarily a problem. Usually that document comes toward the end of the process of closing on a purchase, said David Wicklund, a partner at Vinson & Elkins who focuses on complex acquisition and leveraged financings. It’s often submitted to banks two or three days before closing, making it one of the last items to be finished.But leading up to the closing of a big acquisition typically involves a blizzard of paperwork that has to be negotiated between both parties. There may be 50 to 80 documents that get discussed, Wicklund said.A Delaware judge said on Thursday that if the transaction isn’t done by October 28, she will set new dates in November for the lawsuit between Twitter and Musk. That date comes from a filing from Musk’s team that said the banks needed until then to provide the debt funding.On Monday, Musk sent Twitter a letter saying he would go through with his acquisition “pending receipt of the proceeds of the debt financing.” That made it seem like there was some doubt as to whether the banks would provide their promised financing, which became a sticking point in negotiations between the company and the billionaire.But in a court document on Thursday, Musk’s team said that counsel for the banks “has advised that each of their clients is prepared to honor its obligations.”Bonds, LoansThe banking group originally planned to sell $6.5 billion of leveraged loans to investors, along with $6 billion of junk bonds split evenly between secured and unsecured notes. They are also providing $500 million of a type of loan called a revolving credit facility that they would typically plan to hold themselves.Of the more than $500 million of losses that the banks are estimated to have on the Twitter debt, up to about $400 million stems from the riskiest portion, the unsecured bonds, which have a maximum interest rate for the company of about 11.75%, Bloomberg reported earlier this year. The losses exclude fees the banks would usually earn on the transaction.The rest of the losses are estimated based on where the maximum interest rates would have been determined for the loan and secured bond when compared to the unsecured portion. The expected loss could ultimately be higher or lower.The banking group is expected to give the cash to Twitter and become a lender to the soon-to-be highly indebted social media giant.Morgan Stanley would hold onto the most at about $3.5 billion of debt, based on the debt commitment letter:The banks will have to mark down the debt based on where it would trade in the secondary market, which would likely be at steep discounts to face value, especially for the riskiest portions. BNP Paribas, Mizuho and Societe Generale SA declined to comment. The banks can then wait until better market conditions and try to sell the debt to investors at a later date, likely at a discount to face value.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104272712,"gmtCreate":1665280867607,"gmtModify":1665280870874,"authorId":3567067978989911,"author":{"id":3567067978989911,"idStr":"3567067978989911","authorId":3567067978989911,"name":"Nichktan","avatar":"https://static.tigerbbs.com/73a93daf14236dfaeabaf3ea0b82fe4d","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914626549,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"},{"id":104272327,"gmtCreate":1665279346145,"gmtModify":1665279349667,"authorId":4097387260130260,"author":{"id":4097387260130260,"idStr":"4097387260130260","authorId":4097387260130260,"name":"Kiki19","avatar":"https://static.itradeup.com/news/1330ce44324f235bf8d1fd1b32e7b559","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914626549,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">K</span>","text":"<span class=\"s1\">K</span>","html":"<span class=\"s1\">K</span>"},{"id":104272103,"gmtCreate":1665278427721,"gmtModify":1665278431392,"authorId":4125148185432112,"author":{"id":4125148185432112,"idStr":"4125148185432112","authorId":4125148185432112,"name":"AlanChong","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-2","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Master Trader","description":"Total number of securities or futures transactions reached 100","bigImgUrl":"https://static.tigerbbs.com/ad22cfbe2d05aa393b18e9226e4b0307","smallImgUrl":"https://static.tigerbbs.com/36702e6ff3ffe46acafee66cc85273ca","grayImgUrl":"https://static.tigerbbs.com/d52eb88fa385cf5abe2616ed63781765","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.09.19","exceedPercentage":"80.65%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914626549,"type":1,"supId":104271823,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"},{"id":104271823,"gmtCreate":1665277300572,"gmtModify":1665277303817,"authorId":3581754084854007,"author":{"id":3581754084854007,"idStr":"3581754084854007","authorId":3581754084854007,"name":"tks_82","avatar":"https://community-static.tradeup.com/news/3547658cb0a496157138bc30326aa3d7","vip":1,"crmLevel":1,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9914626549,"type":1,"supId":0,"prevId":0,"content":"ok","text":"ok","html":"ok"}],"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":939,"commentSize":62,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}