Musk made the pledge during a Monday conference call with a group of seven Wall Street lenders led by Morgan Stanley, who are providing $13 billion worth of debt financing to grease the wheels of the deal, according to Bloomberg
An undisclosed source told Bloomberg that the banks expected to receive a borrowing notice on Thursday and the cash would be held in escrow.
Musk and Twitter’s board agreed on a $6 billion purchase back in April, which will see the industrialist buy every single share of the company himself, effectively ending its public ownership. The purchase meant taking on considerable debt, and banks hoped to sell off $6.5 billion of leveraged loans and another $6 billion in junk bonds. However, the shift in the economic winds over the last six months has changed the calculations for the financiers.
Many US economists are now predicting that the Federal Reserve’s drive to stomp out high inflation will require pushing the US into a recession
, especially since the economy was widely perceived to be “burning out” amid record-low unemployment over the summer. Indeed, Musk himself recently predicted
the recession would last into 2024. An economic downturn - which will increase unemployment and undercut employees’ collective bargaining ability - would be welcomed by many corporate leaders, including at major banks like Bank of America, as one leaked memo revealed
WIth an estimated net worth of $214 billion, Musk is by some measures the world’s richest man. He owns several companies including spacefaring company SpaceX, electric carmaker Tesla, and engineering firm The Boring Company.