Wall Street Unloads Musk’s $1.2B Debt Bomb — And Investors Are Rushing In

Morgan Stanley just rolled out the last piece of Elon Musk’s Twitter buyout debt now branded under X Holdings with a $1.23 billion fixed-rate loan offering that’s catching fresh investor attention. Tesla (NASDAQ:TSLA) watchers and credit investors alike are taking note. The loan comes with a 9.5% yield and is priced slightly below par at 97.5 to 98 cents on the dollar. After months of market jitters tied to Trump-era tariffs, the sudden calm has reopened a small but crucial window and the bank isn’t wasting a second. Commitments are due April 28.

This isn’t just a debt sale it’s the final chapter in a $13 billion overhang that’s haunted syndicate desks since Musk’s chaotic Twitter takeover in 2022. Back then, banks like Morgan Stanley planned a fast flip to investors. But backlash over platform changes, advertiser exits, and general Musk-fatigue kept that from happening. Fast forward to now, and the market’s mood has shifted. A junk-debt deal backing QXO’s Beacon Roofing acquisition was upsized just last week due to hot demand a bullish sign that investors are hungry again for risk, especially when it’s backed by names with heat.

What’s changed? For starters, that February loan Morgan Stanley floated part of the same X debt package is trading near par, signaling solid investor confidence. There’s also the MuskTrump dynamic, which has put X back in political (and maybe financial) favor. All signs suggest this final sale will go through smoothly, wrapping up one of Wall Street’s most watched and most delayed syndications. If it lands well, it won’t just clean up bank balance sheets it’ll show that in this market, even the most controversial names can make a comeback.

This article first appeared on GuruFocus.