Hacker News new | ask | show | jobs
by dragontamer 680 days ago
$13 Billion leveraged buyout means that Twitter took on $13 Billion in loans for the privilege of being bought out by Elon.

Assuming a rough interest rate of 10% to 15%, leaves 100million to 150million / month on debt alone.
1 comments
throwaway2037 679 days ago 

    > Assuming a rough interest rate of 10% to 15%
Do you have a source on this? I couldn't find anything.
link
dragontamer 679 days ago
On Twitters specific loan terms? No.

But market rates are well known and well published. CCC class loans were 10% in April 2022 when these deals were likely. So 10% to 15% covers the possible range of loans if you know much about the market.

https://fred.stlouisfed.org/series/BAMLH0A3HYCEY

The higher end of 15% would be possible if the loans were finalized closer to May or June.

There is a big difference from Feb 2022 vs April 2022 though. But we know the rough timeline of Twitters acquisition as well as the rough timeline of when deals were signed. So I'm reasonably confident in an April 2022 deal.

link
runako 679 days ago
Lower tiers of non-investment-grade corporate bonds currently yielding ~14%:

https://fred.stlouisfed.org/series/BAMLH0A3HYCEY

Looks like when he took down the financing, rates would have been in the 12% range. Possible some/all of the debt has been rolled over since then, possibly at higher rates.

link