The two Canadian banks are putting US$1.15-billion into the lowest-risk loan to the Tesla Inc. chief executive
are lining up behind Elon Musk’s US$43-billion bid for Twitter Inc.
The largest loan in the Twitter financing is a US$12.5-billion facility backed by Mr. Musk’s shares in Telsa. The package also includes an unsecured US$3-billion bridge loan - credit with no collateral - and a US$6.5-billion term loan. The risks that come with each level of debt are reflected in the interest rates the banks are charging Mr. Musk.
This is the lowest-cost debt in the Twitter financing package, and therefore the least risky loan. RBC’s analyst who follows Tesla currently has a US$1,175-per-share target price on auto maker, which is 18 per cent higher than where Tesla shares were trading on Monday.
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