Musk told the banks that are partially funding his acquisition that he plans to close the deal by Friday, as the world's richest man finally seems set on purchasing the social network after a very public case of buyer's remorse.
The bankers were told Monday that the deal is happening.
According to sources close to the deal, Musk broke the news on a video call with the bankers.
The primary financiers for the deal are Morgan Stanley, Bank of America andBarclays.
The cash will be put aside by the banks.
If Musk didn't complete the acquisition by Friday, he would have to face a trial at Delaware's Chancery Court in order to push through the deal.
In total, Musk secured $12.50 billion in loans from the banks, with the rest of the funds coming from his own horde of cash. The parties became entangled in a six-month legal tug-of-war, with Musk trying to pull out of the deal as he was sued to close the acquisition.
A rare step for debt financiers, the banks plan to keep the $13 billion in debt for the time being after facing a likely $500 million loss on any sale. Business Insider says that this would be the biggest deal ever.
"They're big boys, they can deal with it," said JP Morgan Chase's CEO when asked about his rivals potentially taking a huge loss with the social media site.
Who is financing Musk's deal to buy the social networking site? The story was reported by the Associated Press.
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