Banks that agreed to fund Elon Musk’s takeover of Twitter are facing the possibility of big losses now that the billionaire has shifted course and indicated a willingness to follow through with the deal, in the latest sign of trouble for debt markets that are crucial for funding takeovers.
The $44 billion deal, which Mr. Musk had been trying to walk away from, would be paid for in part with some $13 billion of debt seven banks including Morgan Stanley Bank of America and Barclays PLC agreed to provide when the takeover was sealed in April.
