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Tesla plans to raise more than $500 million in debt through a bond offering backed by its vehicle leasing program, according to Bloomberg.
The report says investors have put in orders for as much as 14 times what the electric-car maker intends to sell.
According to the report:
It’s the company’s inaugural auto ABS deal after charming buyers in the equity, convertible bond and junk-debt markets. Tesla initially dangled juicy yields to lure investors, as much as 2.9 percentage points over benchmarks on lower-rated portions of the debt. It was later able to cut that margin to 2.65 percentage points, thanks in part to its being a well-known innovator with a charismatic chief and a hotly anticipated product.
The $546 million raise will help finance the company’s costly expansion plans and help ramp production of of the Model 3.