What price will Twitter debt fall to (expressed as cents/per dollar) and go out at, so banks can get it off their books?
3
218Ṁ64
2026
56%
$0.80/$1 >
22%
$0.79/$1 - $0.50/$1
11%
$0.49/$1 - $0.30/$1
11%
< $0.29/$1

Get
Ṁ1,000
to start trading!
Sort by:

https://finance.yahoo.com/news/morgan-stanley-boosts-x-debt-185145976.html
The loan was priced at 97 cents on the dollar, the people said, representing a smaller discount to par than initially expected — and all but guaranteeing no losses for the banks from the largest portion of X-related borrowings. They had previously sold a $1 billion portion of the term loan last month as a way to test investor appetite.

After the sale, big chunks of the debt were trading at 98 to 99 cents on the dollar, people familiar with the matter said. The loan matures in 2029 and carries a margin of 6.5 percentage points over the Secured Overnight Financing Rate, a relatively high rate reflecting the risks of taking on the debt.

There was an earlier attempt with indicative price of 60c on the $ but the impression I have was that this didn't attract investors so didn't happen
https://www.bloomberg.com/news/articles/2022-11-10/twitter-loans-get-bid-at-60-cents-as-banks-sound-out-investors

Anyway it seems like almost all of it has sold at 97% to 99%.

There could of course be some small transactions in the 60c to 79c range that I haven't found or haven't been reported on. If no-one can find any then I think it should resolve at 80c or over to the $.

Not relevant to question but
Given it is 6.5 percentage points over the Secured Overnight Financing Rate, you can easily argue that a one off 3% off after more than a year means investors have made a profit despite the slight discounted rate to get out of the risk.

© Manifold Markets, Inc.Terms + Mana-only TermsPrivacyRules