EXCLUSIVE-Musk's xAI is on track to raise $5 billion in fresh debt, following modest demand
By Matt Tracy, Echo Wang and Davide Barbuscia
NEW YORK, June 17 (Reuters) - Elon Musk's xAI is on track to close on a $5 billion debt raise led by Morgan Stanley, despite tepid investor demand, according to two people familiar with the matter.
The $5 billion debt sale, which includes a floating-rate term loan, a fixed-rate loan and secured bonds, will be allocated to investors on Wednesday, the two people said, asking not to be identified because the deal is private. xAI didn't immediately respond to a request for comment while Morgan Stanley declined.
The floating-rate loan will be offered with an interest rate of 700 basis points over the Secured Overnight Financing Rate, a benchmark rate used to price bond deals, while the fixed-rate loan and secured notes will pay a yield of roughly 12%, said the two people, who were briefed on the deal.
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