Banks funding Twitter deal to keep $13B in debt, rather than syndicate it - report
Scott Olson

Banks that committed to fund Elon Musk's $44 billion purchase of Twitter (NYSE:TWTR) plan to retain $13 billion of debt backing the deal rather than syndicated it. 
The banks are said to have determined to hold the debt on their balance sheets rather than sell it at a loss, according to a WSJ report, which cited people familiar. Banks backing the Twitter transaction include Morgan Stanley (MS), Bank of America (BAC) and Barclays (BCS).
The Twitter deal is expected to close by next Friday and assuming it does, the banks expect to sell some of the Twitter debt by early next year, according to the report.
The WSJ report comes after various media reported earlier this month that banks may lose about $500 million in their effort to fund Elon Musk's purchase of Twitter (TWTR) as the debt market have seized in recent months. The banks originally agreed to fund the purchase even if they couldn't sell the debt and now its unlikely investors would want to buy the debt in the current markets.
Last month banks were reportedly on the hook for Citrix Systems $16.5 billion sale to Elliott and Vista Equity, where banks that underwrote debt backing the deal are collectively headed for $500M in losses when the debt was auctioned off at a discount.
On Wednesday Tesla (TSLA) CEO Musk said that he and other investors are "obviously overpaying" for Twitter (TWTR).