Buyout Deals Like Twitter Won’t Come Cheap for Banks

Providing debt to finance Elon Musk’s takeover of Twitter won’t be easy. But it isn’t impossible.

These days, banks are facing a double whammy when it comes to leveraged financing like Mr. Musk’s looming potential deal—for which a group of banks had previously agreed to arrange some $13 billion in debt financing: The market stinks, and lenders’ balance sheets are often pretty full up.