Elon Musk's X, xAI plan to repay $17.5 billion in debt in full: Report

Elon Musk’s social media platform X and artificial ‌intelligence startup xAI plan to repay in full about $17.5 ​billion in debt tied to the ⁠companies, Bloomberg News reported

Elon Musk’s social media platform X and artificial ‌intelligence startup xAI plan to repay in full about $17.5 ​billion in debt tied to the ⁠companies, Bloomberg News reported on Monday, citing people familiar with the matter.

Morgan Stanley, which is managing the debt for both ‌companies, has been informing existing lenders that X and xAI plan to pay back everything ‌they owe, the report said.

Bloomberg reported that xAI’s $3 ‌billion ⁠of high-yield bonds are set to be ⁠redeemed at about $1.17 on the dollar, a premium reflecting that the debt was expected to remain outstanding for at least two ​years.

The companies have not ‌revealed where the capital is coming from, according to the Bloomberg report.

When companies repay bonds ahead of schedule they typically must compensate investors with a penalty plus ‌the interest lenders had expected to earn ​over the original term.

Some of the debt has been outstanding for years, though portions ⁠are less than a year old and carry penalties, Bloomberg said.