Musk's Twitter Deal Fueled by Risky Loans and Spiking Rates, Creating Major Debt Burden

Musk financed Twitter deal with $13B in bank loans, likely borrowing from SpaceX to meet his $25B cash requirement.

Spiking interest rates gave Musk leverage over banks, who can't sell the junk debt and are stuck with low rate caps.

Twitter's poor performance prevented banks from unloading debt and Musk from refinancing costly bridge loans.

At nearly 2-decade high rates, Musk pays $1.5B annually in interest, far more than the $860M at original low rates.

Musk may aggressively restructure debt, with banks forgiving portions, or make audacious gambit to buy debt himself at steep discount.