xAI increases yield offer on $5 billion debt raise: Source
Elon Musk's xAI is increasing the yield it is offering on a $5 billion debt raise led by
Morgan Stanley
, a source with knowledge of the matter said on Friday.
xAI is offering to pay 12.5% yield on $3 billion in bonds, said the source who asked for anonymity to disclose non-public information. Previously, sources told Reuters the company offered a 12% yield.
The AI startup is also offering 12.5% fixed yield on a $1 billion term loan and set to price a $1 billion term loan B at 725 basis points over the Secured Overnight Financing Rate, known as SOFR. The term loan B is set to be priced at a discount of 96 cents on the dollar, the source said.
The deadline for investor commitments was extended from Tuesday to Friday and allocations will be done on Monday, the source said.
xAI and Morgan Stanley did not immediately comment on the matter.
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