Latest news with #debtSale
Bloomberg
a day ago
- Business
- Bloomberg
Morgan Stanley Widens Net to Land $5 Billion Debt for Musk's xAI
Morgan Stanley is reaching out to a broader pool of investors to shore up demand for a $5 billion debt sale for Elon Musk's artificial intelligence startup xAI Corp., a deal that offers a window into the fallout from the billionaire's feud with US President Donald Trump. When Morgan Stanley launched the debt offering early last week, it already had more than $3.5 billion in orders. Some investors took that as a sign that the deal would soon be oversubscribed, a goal that has been easily exceeded for other Musk-related offerings. As of Monday, though, demand was only up to around $5 billion, and the bank began reaching out to smaller lenders who had not been given access last week, according to people familiar with the deal.
Bloomberg
a day ago
- Business
- Bloomberg
Banks Launch Debt for Bain Capital Buyout of Wingstop Franchisee
A group of Wall Street banks have launched the first part of a roughly $1 billion debt sale to fund Bain Capital 's acquisition of restaurant franchisee Sizzling Platter, which operates outposts of chains including Little Caesars, Dunkin', Jersey Mike's and Wingstop. Jefferies Financial Group Inc. is leading the loan offering, which includes a $425 million seven-year first-lien term loan and an $80 million delayed-draw term loan, according to a person with knowledge of the matter, who asked not to be identified discussing a private matter. Proceeds from the loan will be used to finance the company's buyout along with $500 million in other secured debt.
Reuters
4 days ago
- Business
- Reuters
Musk's xAI expects annual earnings over $13 billion by 2029, Bloomberg reports
June 6 (Reuters) - Billionaire Elon Musk's xAI expects to generate more than $13 billion in annual earnings by 2029, according to numbers revealed by the artificial intelligence startup's banker Morgan Stanley (MS.N), opens new tab, Bloomberg News reported. Morgan Stanley, which is seeking investors for a $5 billion debt sale of xAI, opened the AI startup's books to those willing to commit at least $50 million, Bloomberg reported late Thursday, citing people with knowledge of the situation. The development comes as Musk and U.S. President Donald Trump have been involved in a huge public spat that saw threats fly over government contracts and ended with Musk suggesting Trump should be impeached. The impact of their hostilities on the bank's sale of xAI's debt is uncertain, according to Bloomberg News. Morgan Stanley allowed investors to view limited statistics about xAI, including revenue, earnings, cash flow and projections, the report showed. xAI expects $1 billion in gross revenue by the end of this year, and $14 billion by 2029, the report added. Gross revenue during the first quarter stood at $52 million while xAI lost $341 million before interest, taxes, depreciation and amortization (EBITDA), the report stated. The company projects that EBITDA will be $2.7 billion in 2027 and $13.1 billion in 2029, the report added. Startups in the AI space typically burn through huge amounts of cash, with billions poured into acquiring pricey, advanced data center hardware and attracting top generative AI researchers. XAI plans to spend $18 billion on investments in data centers going forward after spending $2.6 billion on capital expenditures, according to the report. Morgan Stanley and xAI did not immediately respond to Reuters requests for comment. Besides Morgan Stanley's $5 billion debt sale, xAI is also seeking a valuation of $113 billion in a share sale worth $300 million, according to media reports earlier this week.
Wall Street Journal
5 days ago
- Business
- Wall Street Journal
$5 Billion xAI Debt Sale Could Be Derailed By Musk-Trump Spat
The blow-up between Elon Musk and Donald Trump could derail a $5 billion debt sale that Morgan Stanley launched earlier this week for Musk's artificial-intelligence company, xAI. The funds are meant to help the company build out data centers. Morgan Stanley sold billions of dollars in debt backed by X earlier this year, and investors came in with overwhelming demand because of the budding alliance between Musk and Trump. X has since merged with xAI. Investor sentiment is shifting quickly. Tesla shares were down 14%, and a trader said a quote for one of xAI's outstanding loans dropped to 95 cents on the dollar from around 99 cents before the spat went public. The drop in price could signal problems ahead for Morgan Stanley's sale. But so far, buyers who showed initial interest in the deal haven't backed off and the debt sale isn't scheduled to close until later this month, a person familiar with the matter said.
Bloomberg
03-06-2025
- Business
- Bloomberg
Ecuador Vows a Return to Debt Markets, Sending Bonds Soaring
Ecuador bonds jumped the most in emerging markets on Tuesday after the nation's top finance officer said the government plans to return to capital markets next year. Finance Minister Sariha Moya said the Andean nation is planning a debt sale with guarantees from multilateral lenders in 2026, assuming its economic plan is working. Sovereign bonds rallied across the curve, with those due in 2035 climbing 1.4 cents on the dollar.
