Morgan Stanley has been involved in pitching xAI to potential investors, aiming to sell the debt at around 100 cents on the dollar. However, reports indicate that the debt was trading at 95 cents on the dollar at times, suggesting investor hesitancy. To attract buyers, Morgan Stanley might need to offer additional incentives, such as a higher interest rate, due to the declining prices.
Key takeaways:
- Elon Musk's online feud with President Donald Trump is impacting his social media platform X and its parent company xAI.
- Musk merged X and xAI earlier this year and is reportedly seeking to raise $5 billion in debt and $300 million in a secondary sale to fund the combined company.
- Morgan Stanley is pitching potential investors for xAI, but the feud between Musk and Trump is causing complications.
- The debt was initially hoped to sell at 100 cents on the dollar, but was trading at 95 cents, leading to potential additional incentives like increased interest rates.