WBO
Well-Known Member
- Joined
- Jul 7, 2019
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I was just wondering, how many Musk defenders on here actually own a Tesla? I see a lot of them in our parking garage downtown these days.
Remember, I have never had a Twitter account so I don't have a dog in hunt, it's just a fascinating happening.
I still would love to know the financing structure of the acquisition and how much mezzanine debt was used. Typically the interest rates on those borrowings is variable based on revenue and current changes in rates. So his borrowing cost should be increasing, but if he borrowed based on his Tesla stock then that may be somewhat mitigated. That kind of debt is also usually convertible into some kind of super-voting rights preferred stock based on specific metrics. Wonder what the triggers are here.
They do that because mezzanine debt is typically on a 2nd or even 3rd subordinated tier of security. Lots of risk.
Fascinating stuff to see in action.
Remember, I have never had a Twitter account so I don't have a dog in hunt, it's just a fascinating happening.
I still would love to know the financing structure of the acquisition and how much mezzanine debt was used. Typically the interest rates on those borrowings is variable based on revenue and current changes in rates. So his borrowing cost should be increasing, but if he borrowed based on his Tesla stock then that may be somewhat mitigated. That kind of debt is also usually convertible into some kind of super-voting rights preferred stock based on specific metrics. Wonder what the triggers are here.
They do that because mezzanine debt is typically on a 2nd or even 3rd subordinated tier of security. Lots of risk.
Fascinating stuff to see in action.