The first interest payments on the $13bn of buyout loans used by Elon Musk to acquire Twitter last year are reported to be due this month.

The syndicated loan was led by Bank of America, Barclays, Mitsubishi and Morgan Stanley.

Interest payments are reported as being $1.5bn per year. The company reported a loss of $221m in 2021. It has since lost revenue as advertisers have stopped using the platform because of negative news.

Rising rates are also making servicing the debt more expensive. Musk has said the company has approximately $1bn in cash – this may be enough for now but might not last long given the firm’s operating burn rate and ongoing interest payments.

Possibilities include bankruptcy or restructuring the debt. Elon Musk or other investors may also inject additional equity.

The expected losses from these deals at banks, and the high profile nature of this deal, are likely to make bank management and investors more cautious in providing buyout debt for a while.