According to sources, Elon Musk and his team have been exploring raising up to $3B in equity financing to pay down some of Twitter’s debt.  The social media company added $13B in debt to complete Musk’s $44B takeover of the company. Last month Musk’s representatives discussed selling up to $3B in new Twitter shares. If successful, proceeds from the funds would be used to pay down the unsecured portion of Twitter’s debt load, which carries the highest interest rate. Twitter’s unsecured bridge loans total about $3B and have an interest rate of 10% plus the secured overnight financing rate. Twitter’s first quarterly interest payment is due at the end of this month. The company’s annual total interest expense is about $1.25B. Musk’s advisers had hoped to reach a deal for the new capital at the initial takeover price by the end of 2022. According to a recent securities filing, Fidelity wrote down its stake in Twitter by 56%. The firm was one of the co-investors that backed Musk’s $44B Twitter takeover. Twitter has $6.5B in term loans and $3B in secured bridge loans, and they carry an interest rate of 4.75% and 6.75%, respectively, plus the overnight financing rate.