A group of banks including Morgan Stanley, Bank of America, Barclays 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 percent, the source added.

Musk's close relationship with US 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.

READ MORE: Musk's AI company buys his social media firm X at $33 billion

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

Morgan Stanley, Barclays, Mitsubishi UFJ and X did not immediately respond to Reuters' requests for comment. Bank of America declined to comment.

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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.