Elon Musk seeks to clean up Tesla’s margin loan with new funding from Twitter: report – National

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Elon Musk is in talks to raise sufficient capital and preferential financing for the proposed purchase of Twitter Inc TWTR.N to deny the need for a $6.25 billion margin loan tied to its Tesla TSLA.O Inc shares, Bloomberg Law reported Thursday.

The billionaire’s advisers, led by Morgan Stanley, have begun soliciting interest from potential investors for up to $6 billion in preferred equity financing, according to the report, which cited people with knowledge of the matter.

Twitter declined to comment on the report, while Musk could not be reached for comment.

Musk originally took out a $12.5 billion margin loan secured against his Tesla shares to help finance his Twitter purchase. But he reduced that loan to $6.25 billion earlier this month after bringing in co-investors.

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— Reporting by Tiyashi Datta in Bangalore

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