The post Musk’s xAI pushes ahead with $5B debt sale despite investor doubts appeared on BitcoinEthereumNews.com.

Elon Musk’s artificial intelligence startup, xAI Corp., raised the yield on its $5 billion debt offering on Friday, June 20, to make the deal more attractive to investors. At the same time, the lead underwriter of Morgan Stanley is working to finalize investor commitments for the package. The original commitment deadline was Tuesday, June 17, but Morgan Stanley extended the timeline to allow more investors to participate. Musk’s xAI offers new packages for investors to counteract challenges faced Following the sweetened pricing on xAI, the package now consists of $3 billion of bonds with a yield of 12.5%, a $1 billion 12.5% fixed rate term loan, and a $1 billion term loan B offered at 7.25 percentage points above the benchmark rate with a discount of 96 cents for every dollar, a person familiar with the matter said. All the components were priced at lower rates, and the term loan B had a smaller discount. In the meantime, some investors expected that the company would have to offer higher yields on the debt to get the deal done. The offering began earlier this month and has been dragged down by Musk’s differences with US President Donald Trump and investor fears of xAI’s financial resources. According to reliable sources, the company opted to raise another $4.3 billion in equity and amend some terms on debt documents to allay those concerns. Representatives for xAI did not immediately respond to requests for comment. Musk’s xAI pushes ahead with $5B debt sale despite investor doubts Elon Musk’s xAI is set to finalize a $5 billion debt deal led by Morgan Stanley, even as investor demand turns cold, two people familiar with the matter said. The debt sale, including a floating-rate term loan, fixed-rate loan, and secured bonds, will be allocated to investors on Wednesday next week,…

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Filed under: News - @ June 20, 2025 6:27 pm