chief executive officer Bank of Americaone of Elon Musk’s financiers Twitter acquisition, doesn’t seem worried about the deal.
CNBC reported on Thursday that Musk is now in charge of Twitter. Binance, one of the investors in the deal, told CNBC that the acquisition has closed.
After Musk first announced plans to buy Twitter in April, he secured equity financing from a variety of investors, including tech firms, as well as debt financing from several investment banks. One of them is Bank of America.
But with the decline in tech stocks this year and investors wary of risky assets, the debt may be a tough sell to investors, meaning banks may be forced to hold the debt.
The Wall Street Journal reported Wednesday that investment banks may hold the debt until next year before selling it. Credit analysis firm 9fin estimates banks could face $500 million in losses if they sell debt in the current environment.
In an interview with CNBC on Friday, Bank of America CEO Brian Moynihan, seemed unfazed however.
When asked if he would lose sleep over the deal, he said: “I have experts handling clients and I don’t lose sleep over them. I lose sleep over a lot of other things, but not over that.”
Banks that pledged to finance the deal have begun releasing funds into escrow accounts, according to the Wall Street Journal. When the acquisition closes, the funds will go to Musk to finance the deal.
There has been no official confirmation that the deal has been completed, but Musk hinted that it was closed in a tweet that said: “the bird is set free,” referring to Twitter’s blue bird logo.