(Bloomberg) -- Morgan Stanley is looking to offload another large portion of X Corp.’s debt, less than week after it sold $5.5 billion of the social-media platform’s loans that had been stuck on its books for years.

The bank kicked off a $2.97 billion loan sale Monday that will pay an interest rate of 9.5% and is expected to be sold later this week, according to people with knowledge of the matter, who asked not to be identified discussing a private transaction.

The debt is being pitched at 98 cents or more on the dollar, said one of the people, which is a narrower discounted price than where a $5.5 billion leveraged loan deal was sold last week at 97 cents. The proceeds will be used to repay an existing first-lien secured bridge loan stemming from Elon Musk’s purchase of the social media platform in 2022, said the people. 

Wall Street firms got stuck with $13 billion of debt that Musk heaped on X during his surprise bid to take it private. While banks typically try to resell debt they commit to fund an acquisition quickly, investors balked in this case after Musk upended X’s business, laid off staff and sparked a steep revenue decline.

In addition to the $5.5 billion loan sold last week, a $1 billion portion of the debt was offloaded last month to test investor appetite.

A representative for Morgan Stanley declined to comment.

(Updates with more details throughout.)

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