xAI Corp. Offers Improved Pricing for $5 Billion Debt Issuance

According to Odaily, Elon Musk's AI startup, xAI Corp., has provided investors with more favorable pricing for its $5 billion debt issuance. On the same day, Morgan Stanley concluded its commitment solicitation for the transaction. Sources familiar with the matter revealed that the issuance plan now includes $3 billion in bonds with a yield of 12.5%, a $1 billion fixed-rate term loan at 12.5%, and a $1 billion Class B term loan priced at the benchmark rate plus 7.25 percentage points, issued at a discount of 96 cents on the dollar. Some investors had previously anticipated that the company would need to increase the debt yield to complete the transaction.