Elon R. Musk $25.5 billion Twitter acquisition financing
Davis Polk is advising the joint lead arrangers in connection with a $6.5 billion senior secured term loan facility, a $500 million senior secured revolving credit facility, a $3 billion senior secured bridge facility and a $3 billion senior unsecured bridge facility, being provided to an acquisition vehicle formed by Elon R. Musk in connection with his proposed acquisition of Twitter, Inc.
Davis Polk is also advising the initial lenders under a margin loan facility in an aggregate principal amount of up to $12.5 billion, being provided to a finance vehicle formed by Mr. Musk in connection with the proposed acquisition of Twitter. The facility will be a term loan secured by a portion of Mr. Musk’s shares in Tesla, Inc.
Elon R. Musk is an entrepreneur and investor, holding CEO positions at Tesla and SpaceX, and is the founder of The Boring Company. As of April 21, 2022, Mr. Musk has an estimated net worth of approximately $280 billion and is the world’s richest individual according to Forbes’ Real-Time Billionaires List.
Twitter is a real-time information network that connects users to the latest stories, ideas, opinions and news. Twitter enables its users to send and read text-based messages known as tweets.
The Davis Polk finance team includes partner James A. Florack, counsel Sanders Witkow and associates Phoebe Jin and Jeffrey Hon. The equity derivatives team includes partner John M. Brandow, counsel Faisal Baloch and associates Stockton Bullitt and Jonathan Schlecht. Partner Alan F. Denenberg is providing capital markets advice. Partner Louis Goldberg and associate Sharanjit Kaur Sandhu are providing mergers and acquisitions advice. Members of the Davis Polk team are based in the New York and Northern California offices.