Latest news with #Musk-related
Mint
16-06-2025
- Business
- Mint
Morgan Stanley seeks debt buyers for Musk-owned xAI after Trump feud
Morgan Stanley is reaching out to a large pool of investors to strengthen demand for a $5 billion debt sale for Elon Musk's artificial intelligence startup xAI Corp., a deal that offers a window into the fallout from the billionaire's feud with US President Donald Trump. When Morgan Stanley launched the debt offering early last week, it already had more than $3.5 billion in orders. Some investors took that as a sign that the deal would soon be oversubscribed, a goal that has been easily exceeded for other Musk-related offerings, reported Bloomberg. As of Monday, though, demand had only risen to around $5 billion, and the bank began reaching out to smaller lenders who had not been given access last week, according to people familiar with the deal. The firm still intends to finalise the investor list by 17 June as planned. Bloomberg said that banks typically want demand to be substantially higher than the actual deal size so they have more flexibility on pricing and terms. The effort to borrow money for xAI is an early indication of how the feud between Trump and Musk might hit Musk's broader network of private companies, which includes SpaceX and Neuralink. The market value of his biggest company, Tesla Inc., has already fallen $42 billion since last Thursday when Musk and Trump took aim at each other on social media, recovering in the last couple of days from a massive downturn as tensions between the two parties eased, reported Bloomberg. Some potential lenders told Bloomberg that they were initially drawn to the debt offering, in part because of Musk's good relationship with Trump, but are now approaching it with more caution because of the feud. Trump said last week that he would consider ending government contracts with Musk's companies. The debt package includes a floating-rate term loan, a fixed-rate term loan, and senior secured notes. According to Bloomberg sources, official price talk set the yield of about 12% on the notes and fixed-rate loans. Sources told Bloomberg that the floating-rate loan is being discussed at 7 percentage points above the Secured Overnight Financing Rate and a discounted price of 97 cents on the dollar. In meetings on Thursday, investors who were willing to write checks of at least $50 million were allowed to view limited statistics about the company, including revenue, earnings, cash flow and projections, Bloomberg previously reported. The figures showed that the company is spending far more than it is earning. But that had not dimmed enthusiasm about a company operating at the centre of the fastest-growing part of the technology industry. Investors were told last week that the company was worth $80 billion at the end of March, up from $51 billion at the end of 2024, reported Bloomberg. Credit investors were particularly excited because it offered them a rare opportunity to get exposure to the AI industry, which is generally only accessible to equity investors. This is all a very different situation from a few months ago, when Morgan Stanley was selling some of the remaining debt from Musk's acquisition of X. The bank was able to easily unload the loans as Musk's relationship with Trump helped attract buyers. The value of those loans, which fell to as low as 95 cents on the dollar after the feud broke out on Thursday, have recovered to nearly 97 cents, according to Bloomberg-compiled data.
Yahoo
10-06-2025
- Business
- Yahoo
Morgan Stanley Seeks xAI Debt Buyers After Musk-Trump Feud
(Bloomberg) -- Morgan Stanley is reaching out to a broader pool of investors to shore up demand for a $5 billion debt sale for Elon Musk's artificial intelligence startup xAI Corp., a deal that offers a window into the fallout from the billionaire's feud with US President Donald Trump. Trump Said He Fired the National Portrait Gallery Director. She's Still There. Trump's Military Parade Has Washington Bracing for Tanks and Weaponry NYC Mayoral Candidates All Agree on Building More Housing. But Where? Senator Calls for Closing Troubled ICE Detention Facility in New Mexico California Pitches Emergency Loans for LA, Local Transit Systems When Morgan Stanley launched the debt offering early last week, it already had more than $3.5 billion in orders. Some investors took that as a sign that the deal would soon be oversubscribed, a goal that has been easily exceeded for other Musk-related offerings. As of Monday, though, demand had only risen to around $5 billion and the bank began reaching out to smaller lenders who had not been given access last week, according to people familiar with the deal. The firm still intends to finalize the investor list by June 17 as originally planned. Typically, banks want demand to be substantially higher than the actual deal size so they have more flexibility on pricing and terms. Morgan Stanley declined to comment. xAI did not immediately respond to a request for comment. The effort to borrow money for xAI, which is now worth $94 billion, offers one of the first indications of how the rift between Trump and Musk might hit Musk's broader network of private companies, which includes SpaceX and Neuralink. The market value of his biggest company, Tesla Inc., has fallen $42 billion since last Thursday when Musk and Trump took aim at each other on social media, recovering in the last couple of days from a steeper drop as tensions simmered down. The debt package includes a floating-rate term loan, a fixed-rate term loan and senior secured notes. Official price talk emerged Tuesday at a yield of about 12% on the notes and fixed-rate loan, according to people with knowledge of the matter, in line with levels previously reported by Bloomberg. The floating-rate loan is being discussed at 7 percentage points above the Secured Overnight Financing Rate, and a discounted price of 97 cents on the dollar, the people said. Some investors said they expected the company would have to hike yields to close the deal, people familiar with the negotiations said. Musk recently merged xAI with his social-networking platform X, formerly known as Twitter Inc., into a combined company called XAI Holdings. In meetings Thursday, investors who were willing to write checks of at least $50 million were allowed to view limited statistics about the company, including revenue, earnings, cash flow and projections, Bloomberg previously reported. The figures showed a company that is still spending far more than it brings in. But that had not dimmed enthusiasm about a company operating at the center of the fastest growing part of the technology industry. Investors were told last week that the company is worth $94 billion, up from $51 billion at the end of 2024. Credit investors were particularly excited because it offered them a rare opportunity to get exposure to the AI industry, which is generally only accessible to equity investors. Some potential lenders said they were initially drawn to the deal, in part, because of Musk's good relationship with Trump and are now approaching it with more caution because of the feud. Trump said last week that he would consider ending government contracts with Musk's companies. This is all a very different situation from a few months ago, when Morgan Stanley was selling some of the remaining debt from Musk's acquisition of X. The bank was able to easily unload the loans as Musk's relationship with Trump helped attract buyers. The value of those loans, which fell to as low as 95 cents on the dollar after the feud broke out on Thursday, have recovered to nearly 97 cents, according to Bloomberg-compiled data. --With assistance from Eliza Ronalds-Hannon, Jeannine Amodeo and Kevin Kingsbury. (Updates with official pricing discussions in paragraphs six and seven.) New Grads Join Worst Entry-Level Job Market in Years American Mid: Hampton Inn's Good-Enough Formula for World Domination The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling What America's Pizza Economy Is Telling Us About the Real One Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
&w=3840&q=100)
Business Standard
10-06-2025
- Business
- Business Standard
Morgan Stanley hunts for xAI debt buyers after feud between Musk, Trump
Credit investors were particularly excited because it offered them a rare opportunity to get exposure to the AI industry, which is generally only accessible to equity investors Bloomberg By Carmen Arroyo, Jill R. Shah and Gowri Gurumurthy Morgan Stanley is reaching out to a broader pool of investors to shore up demand for a $5 billion debt sale for Elon Musk's artificial intelligence startup xAI Corp., a deal that offers a window into the fallout from the billionaire's feud with US President Donald Trump. When Morgan Stanley launched the debt offering early last week, it already had more than $3.5 billion in orders. Some investors took that as a sign that the deal would soon be oversubscribed, a goal that has been easily exceeded for other Musk-related offerings. As of Monday, though, demand was only up to around $5 billion, and the bank began reaching out to smaller lenders who had not been given access last week, according to people familiar with the deal. The bank still intends to finalize the investor list by June 17 as originally planned. Typically, banks want demand to be substantially higher than the actual deal size so they have more flexibility on pricing and terms. The effort to borrow money for xAI, which is now worth $94 billion, offers one of the first indications of how the rift between Trump and Musk might hit Musk's broader network of private companies, which includes SpaceX and Neuralink. The market value of his biggest company, Tesla Inc., has fallen by around $75 billion since last Thursday, when Musk and Trump took aim at each other on social media. The debt package includes a floating-rate term loan, a fixed-rate term loan and senior secured notes, Bloomberg reported previously. Last week, investors were told that the senior notes would offer a yield of roughly 12%. Some investors are now expecting that the company will need to pay more than that to close the deal, people familiar with the negotiations said. Musk recently merged xAI with his social-networking platform X, formerly known as Twitter Inc., into a combined company called XAI Holdings. In meetings Thursday, investors who were willing to write checks of at least $50 million were allowed to view limited statistics about the company, including revenue, earnings, cash flow and projections, Bloomberg previously reported. The figures showed a company that is still spending far more than it brings in. But that had not dimmed enthusiasm about a company operating at the center of the fastest growing part of the technology industry. Investors were told last week that the company is worth $94 billion, up from $51 billion at the end of 2024. Credit investors were particularly excited because it offered them a rare opportunity to get exposure to the AI industry, which is generally only accessible to equity investors. Some potential lenders said they were initially drawn to the deal, in part, because of Musk's good relationship with Trump and are now approaching it with more caution because of the feud. Trump said last week that he would consider ending government contracts with Musk's companies. This is all a very different situation from a few months ago, when Morgan Stanley was selling some of the remaining debt from Musk's acquisition of X. The bank was able to easily unload the loans as Musk's relationship with Trump helped attract buyers. The value of those loans, which fell to as low as 95 cents on the dollar after the feud broke out on Thursday, recovered somewhat on Friday but was down again slightly on Monday.
Yahoo
09-06-2025
- Business
- Yahoo
Morgan Stanley Hunts for xAI Debt Buyers After Musk-Trump Feud
(Bloomberg) -- Morgan Stanley is reaching out to a broader pool of investors to shore up demand for a $5 billion debt sale for Elon Musk's artificial intelligence startup xAI Corp., a deal that offers a window into the fallout from the billionaire's feud with US President Donald Trump. Next Stop: Rancho Cucamonga! Where Public Transit Systems Are Bouncing Back Around the World Trump Said He Fired the National Portrait Gallery Director. She's Still There. NYC Mayoral Candidates All Agree on Building More Housing. But Where? US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn When Morgan Stanley launched the debt offering early last week, it already had more than $3.5 billion in orders. Some investors took that as a sign that the deal would soon be oversubscribed, a goal that has been easily exceeded for other Musk-related offerings. As of Monday, though, demand was only up to around $5 billion, and the bank began reaching out to smaller lenders who had not been given access last week, according to people familiar with the deal. The bank still intends to finalize the investor list by June 17 as originally planned. Typically, banks want demand to be substantially higher than the actual deal size so they have more flexibility on pricing and terms. Morgan Stanley declined to comment. xAI did not immediately respond to a request for comment. The effort to borrow money for xAI, which is now worth $94 billion, offers one of the first indications of how the rift between Trump and Musk might hit Musk's broader network of private companies, which includes SpaceX and Neuralink. The market value of his biggest company, Tesla Inc., has fallen by around $75 billion since last Thursday, when Musk and Trump took aim at each other on social media. The debt package includes a floating-rate term loan, a fixed-rate term loan and senior secured notes, Bloomberg reported previously. Last week, investors were told that the senior notes would offer a yield of roughly 12%. Some investors are now expecting that the company will need to pay more than that to close the deal, people familiar with the negotiations said. Musk recently merged xAI with his social-networking platform X, formerly known as Twitter Inc., into a combined company called XAI Holdings. In meetings Thursday, investors who were willing to write checks of at least $50 million were allowed to view limited statistics about the company, including revenue, earnings, cash flow and projections, Bloomberg previously reported. The figures showed a company that is still spending far more than it brings in. But that had not dimmed enthusiasm about a company operating at the center of the fastest growing part of the technology industry. Investors were told last week that the company is worth $94 billion, up from $51 billion at the end of 2024. Credit investors were particularly excited because it offered them a rare opportunity to get exposure to the AI industry, which is generally only accessible to equity investors. Some potential lenders said they were initially drawn to the deal, in part, because of Musk's good relationship with Trump and are now approaching it with more caution because of the feud. Trump said last week that he would consider ending government contracts with Musk's companies. This is all a very different situation from a few months ago, when Morgan Stanley was selling some of the remaining debt from Musk's acquisition of X. The bank was able to easily unload the loans as Musk's relationship with Trump helped attract buyers. The value of those loans, which fell to as low as 95 cents on the dollar after the feud broke out on Thursday, recovered somewhat on Friday but was down again slightly on Monday. --With assistance from Eliza Ronalds-Hannon. New Grads Join Worst Entry-Level Job Market in Years The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again What America's Pizza Economy Is Telling Us About the Real One America Cast Itself as the World's Moral Leader. Not Anymore ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
09-06-2025
- Business
- Time of India
dow jones today: US stock market today: S&P 500 flat, Dow Jones down, Nasdaq‑100 up— biggest gainers, losers as Wall Street eyes US-China trade talks and potential tariff deal
How are the major indices performing? S&P 500 (SPY): Sitting steady at about 599.15, virtually unchanged from the previous close, remaining just under the 6,000 mark. Sitting steady at about 599.15, virtually unchanged from the previous close, remaining just under the 6,000 mark. Dow Jones Industrial Average (DIA): Dropping roughly 0.21% to 427.47, reflecting some investor caution. Dropping roughly 0.21% to 427.47, reflecting some investor caution. Nasdaq-100 (QQQ): Climbing around 0.16% to 530.77, fueled by strength in the tech sector. Which stocks are making the biggest moves? Warner Bros Discovery: Surging 7-9% following news of a company split. Surging 7-9% following news of a company split. IonQ: Up about 3% after announcing an acquisition of Oxford Ionics. Up about 3% after announcing an acquisition of Oxford Ionics. Merck: Rising 1.1%, boosted by positive trial results. Rising 1.1%, boosted by positive trial results. Nvidia: Gaining between 1.3% and 2.3%, riding the wave of AI enthusiasm. Gaining between 1.3% and 2.3%, riding the wave of AI enthusiasm. Qualcomm: Jumping 4.4% on completion of its Alphawave IP purchase. Jumping 4.4% on completion of its Alphawave IP purchase. Apple: Adding 0.7%, supported by new AI features unveiled at the WWDC event. Robinhood: Dropping 7.4% after being excluded from the S&P 500 index. Dropping 7.4% after being excluded from the S&P 500 index. Tesla: Down between 0.3% and 2%, impacted by a recent downgrade and fallout from Musk-related news. Down between 0.3% and 2%, impacted by a recent downgrade and fallout from Musk-related news. EchoStar: Falling 8.2% amid bankruptcy rumors. Why are the US and China meeting now — and what's at stake for the stock market? ADVERTISEMENT What's driving the stock market recovery in 2025? ADVERTISEMENT Are tariffs still in effect, and why does it matter now? ADVERTISEMENT Could US-China trade deals shape the next market trend? What's driving the market today? Trade talks between the U.S. and China in London continue to shape investor sentiment, contributing to the Dow's decline and a slight Nasdaq boost. in London continue to shape investor sentiment, contributing to the Dow's decline and a slight Nasdaq boost. Inflation concerns remain front and center , with traders awaiting this week's CPI and core PCE data releases. Expectations suggest the Federal Reserve may hold interest rates steady for now. , with traders awaiting this week's CPI and core PCE data releases. Expectations suggest the Federal Reserve may hold interest rates steady for now. Sector trends show technology stocks powering the gains, while healthcare lags behind. What should investors watch next? FAQs: The US stock market opened slightly weaker on Monday, June 9, as Wall Street turned its attention to critical trade talks between the United States and China. Early trading saw the Dow Jones Industrial Average fall by 185 points, or about 0.5%, marking a cautious start to the week. The S&P 500 dipped 0.1%, while the Nasdaq Composite edged up slightly by 0.1% around 9:35 a.m. Eastern are closely watching the developments in London, where senior officials from both countries are meeting to ease long-standing trade tensions. The discussions aim to address a range of economic disputes and possibly roll back mutual tariffs that have been weighing on global supply chains for week's US-China trade talks are seen as pivotal for the global economy. Tariffs imposed in past years have disrupted everything from electronics to heavy equipment. Though those tariffs are currently paused, no permanent deal has been believe that progress in these talks could help avoid a potential economic slowdown or even a recession, especially if they result in the reduction or removal of tariffs on both sides. A positive outcome could also reignite investor confidence and fuel another leg up in the US stock market modest moves reflect investor hesitancy. Market players are clearly waiting for concrete news before making big decisions. The S&P 500 remains just 2.5% below its all-time high, buoyed by hopes that the US may reach trade agreements that roll back tariffs major factor behind the stock market's strong recovery has been the belief that President Donald Trump will reduce trade barriers as part of broader global deals. After plunging by nearly 20% from its peak two months ago, the S&P 500 has made a swift optimism is largely driven by expectations that smoother trade relations — particularly with major economies like China — will relieve pressure on multinational companies and bring stability back to supply both the US and China have put a pause on new tariffs, but existing ones remain. These tariffs have cost industries billions, increased consumer prices, and created uncertainty for global important now is whether these paused tariffs are finally lifted. This could significantly improve the flow of goods, lower costs, and potentially lead to more business investments, especially in sectors like tech, agriculture, and Any meaningful breakthrough in US-China trade negotiations could serve as a key catalyst for markets. Investors are looking for long-term clarity, not just temporary Monday's talks in London show signs of real progress, we could see increased investor confidence, reduced market volatility, and fresh momentum across Dow Jones, S&P 500, and without a deal, continued uncertainty could weigh on the markets in the coming should keep a close eye on the statements or outcomes from the US-China meetings. Any mention of progress on tariff rollbacks, trade agreements, or economic cooperation could trigger immediate market also worth noting that the Federal Reserve's next move, broader economic indicators, and the 2024 US election climate remain in focus as secondary factors influencing the market Dow Jones dropped due to investor caution ahead of the US-China trade talks aim to ease tariffs and settle long-running trade disputes affecting the global economy.
