A group of banks led by Morgan Stanley is preparing to sell as much as $3 billion of senior debt tied to Elon Musk’s buyout of X, the social media platform formerly known as Twitter, according to people with knowledge of the matter.

Bankers have contacted a small group of investors to assess their interest in buying chunks of at least $250 million at a discounted price in the range of 90 to 95 cents on the dollar, said the people, who asked not to be identified discussing private information. A sale may kick off as soon as next week, they said.

The approach marks the banks’ most significant effort so far to rid themselves of $13 billion of debt tied to Musk’s purchase of Twitter Inc. that got stuck on their books in 2022 after the billionaire launched a surprise bid to take the company private. Seven banks including Bank of America Corp., Barclays Plc, and Mitsubishi UFJ Financial Group Inc. agreed to finance that deal.