Twitter shares jumped more than 7 percent in after-hours trading following a fresh securities filing showing Elon Musk has boosted the equity commitment in his Twitter buyout to $33.5 billion from $27.5 billion.
The filing stated that Tesla’s CEO has allowed the margin loan commitment provided by Morgan Stanley to expire. The margin loan was backed by Tesla shares, according to a previous filing. Tesla shares were down 45 percent year-to-date.
Instead of relying on a margin loan to fund the transaction, the billionaire has increased his equity commitment by $6.25 billion.
Musk “committed to provide an additional $6.25 billion in equity financing to fund a portion of the Merger Consideration by amending and restating the Amended Equity Commitment Letter,” the filing stated….