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Investing.com -- Elon Musk’s artificial intelligence company xAI is finalizing a $5 billion debt raise led by Morgan Stanley (NYSE:MS), according to a Reuters report on Tuesday.
The debt sale, which includes a floating-rate term loan, a fixed-rate loan, and secured bonds, will be allocated to investors on Wednesday, despite facing tepid investor demand, the report added.
The floating-rate loan will reportedly carry an interest rate of 700 basis points over the Secured Overnight Financing Rate, a benchmark rate used in bond pricing. Meanwhile, the fixed-rate loan and secured notes will offer a yield of approximately 12%.
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