April 28 (Reuters) - A group of banks including Morgan Stanley ( MS ), Bank of America ( BAC ),

Barclays ( BCS ) and Mitsubishi UFJ sold the final piece of debt tied to billionaire Elon Musk's $44

billion buyout of social media platform Twitter, now called X, a source familiar with the matter

told Reuters on Monday.

Loans worth $1.2 billion have been sold at 98 cents on the dollar, paying a yield of 9.5%,

the source added.

Musk's close relationship with U.S. President Donald Trump and prospects of X's improving

revenue have allowed banks to offload almost all of the $13 billion they had been holding on

their books for nearly two years.

The acquisition was funded by a $6.5 billion secured term loan, a $500 million revolving

credit facility, a $3 billion unsecured loan and $3 billion of secured loans. Morgan Stanley ( MS ) and

six other lenders participated in Musk's buyout, lending him a total of $13 billion.

Reuters had reported earlier this month that Morgan Stanley ( MS ) was offering the last piece of

its $1.23 billion of debt related to X in the form of a fixed-rate loan at an interest of 9.5%

and a discounted price of 97.5 cents to 98 cents on the dollar.

Morgan Stanley ( MS ), Barclays ( BCS ), Mitsubishi UFJ and X did not immediately

respond to Reuters' requests for comment. Bank of America ( BAC ) declined to comment.

The Wall Street Journal first reported the development earlier in the day. Last month, Musk

said his AI company, xAI, had acquired X in a deal that valued the social media platform at $33

billion.