So where will all that money come from? Three major buckets, it turns out:
To summarize: Musk intends to borrow around $13 billion in various fashions; borrow $12.5 billion against his own equity holdings; and pay around $21 billion from his own holdings. It’s a somewhat complicated collection of funding sources, but Musk’s bid is hardly small, so the path to collecting the needed cash in one pile is understandably convoluted.
Do not consider the above “funding secured” notes as indication that the deal is a slam-dunk. Twitter has its back up over the bid, and Musk’s filing states plainly that “there can be no assurance that a definitive agreement with respect to the Proposed Transaction will be executed or, if executed, whether the Proposed Transaction will be consummated,” and that Musk has “not commenced, or determined to commence, any tender offer for Shares of Twitter” quite yet.
More to come, in other words, but Musk does appear to have a way to the cash he needs to make his bid more than just words.