Elon Musk's xAI offers investors more favorable pricing for $5 billion debt issuance

2025-06-21 06:10

Odaily Planet Daily News: Musk's artificial intelligence startup xAI Corp. has offered investors a more favorable pricing for its $5 billion debt issuance, and on the same day, Morgan Stanley also ended its call for commitments for the deal. According to informed sources, the issuance plan now includes: $3 billion bond with a yield of 12.5% A fixed rate term loan with a 12.5% interest rate of 1 billion US dollars $1 billion B-class term loan, priced at a benchmark interest rate plus 7.25 percentage points, issued at a discount of 96 cents on face value Some investors had previously anticipated that the company would need to increase its debt yield in order to complete the transaction. (TechinAsia)

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