Elon Musk ditches Tesla (TSLA) margin loan for Twitter takeover, increasing equity commitment to $33.5 billion

According to a new regulatory filing published on Wednesday afternoon, Elon Musk will no longer be using Tesla (TSLA) margin loans to fund his $44 billion acquisition of Twitter.

Musk was originally planning to use up to $12.5 billion in TSLA margin loans to fund a portion of the proposed deal, a figure that was later reduced to $6.25 billion.

The Amendment No. 7 to Schedule 13D filing with the U.S. Securities and Exchange Commission (SEC) says that as of May 24, 2022, Musk has allowed the remaining margin loan commitments to expire.

As a result, Musk has now increased the equity commitment in the deal up to $33.5 billion, up from the previous $27.5 billion, the filing explains.

In addition, the filing says that Musk is continuing to have discussions with existing Twitter (TWTR) shareholders, including co-founder and former CEO of Twitter Jack Dorsey, about committing their existing shares into the deal.

Musk has already been able to secure up to secure more than $7 billion from investors, the names of which include Oracle co-founder and Tesla board member Larry Ellison.

These changes will likely increase the odds that Musk’s Twitter deal gets completed. The original buyout amount was priced at $54.20 per share. Shares are up nearly 4% in after-hours trading following the publication of the filing.

twtr

You can read a full copy of the filing below.

f4befd36-8304-48b4-b7e2-d410e033577a
Are you buying a Tesla? If you enjoy our content and we helped in your decision, use our referral link to get three months of Full Self-Driving (FSD).
Previous Article

Menlo Park takes delivery of three Tesla Model Y police cruisers

Next Article

Tesla Model Y Revel taxi crashes at high speed in Manhattan

You might be interested in …

Tesla Gigafactory Berlin

Tesla receives permission to begin clearing the Gigafactory Berlin site ahead of the start of construction

The Brandenburg State Office for the Environment has given Tesla preliminary approval to begin the clearing the future site of Gigafactory Berlin. The news was announced by Jörg Steinbach, Minister for the Economy, who tweeted […]