(PresidentialHill.com)- Elon Musk conducted a conference call with executives from the banks that were assisting him in the process of purchasing Twitter on Monday. During the conversation, he informed the bank representatives that he wanted to conclude the deal by Friday.
After the call, the banks announced that they would conduct the necessary actions to conclude the deal successfully.
According to Bloomberg’s sources, the banks are reportedly putting together the final credit agreement and are in the process of finalizing the documents. A notification of intent to borrow is anticipated to be delivered to the financial institutions on Tuesday, with the funds being placed in escrow on Thursday.
$13 billion of the overall purchase price of $44 billion is being paid using debt financing provided by eight financial institutions.
Morgan Stanley, Bank of America, Barclays, and Mitsubishi UFJ Financial Group are the top four financial institutions responsible for 90 percent of debt financing. BNP Paribas, Mizuho, and Societe Generale are the institutions responsible for the remaining 10 percent of the funding.
In April, the banks agreed to provide debt financing in the form of $6.5 billion in “leveraged loans,” $6 billion in “junk bonds,” and $500 million in a “revolving credit facility.” However, due to Musk’s unpredictable behavior, the timeline has been drastically shortened, and the banks are now required to keep the debt on their books for the time being.
Shareholders gave their blessing to Musk’s $44 billion buyout plan in September, and on October 4, he said that he would move forward with the purchase regardless of their verdict.
Twitter requested that a trial be held to ensure that Musk could come up with the funds; however, two days later, a judge struck down their petition and ruled that the billionaire had until October 28 to get his financing sorted out. Twitter argued that the trial would ensure that Musk could come up with the funds.
If by Friday, the banks are unable, for whatever reason, to supply Elon Musk with the money, then the trial that Twitter has requested will take place.