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Oops, missed a key point of the 8-K. The Warehouse line also increased by $300. So, $500 million total here. Nice de-risking. Here's the relevant language:
Amendment to Credit Agreement
On December 15, 2016, Tesla Motors, Inc. (the “Company”) and its subsidiary Tesla Motors Netherlands B.V. (“Tesla B.V.” and together with the Company, collectively, the “Borrowers”), entered into the Fifth Amendment (the “Credit Agreement Amendment”) to the ABL Credit Agreement, dated as of June 10, 2015 (as amended, modified or supplemented, the “Credit Agreement”), among the Borrowers, the lenders party thereto, and Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and the other agents party thereto. The Credit Agreement Amendment increased the revolving commitments under the Credit Agreement by $200.0 million, thereby increasing the total revolving commitments from $1.0 billion to $1.2 billion, and amended the Credit Agreement to permit the Borrowers to obtain up to $50.0 million of additional commitments pursuant to the terms of the Credit Agreement.
Amendment to Warehouse Agreement; Assumption Agreement
On December 15, 2016, Tesla Finance LLC (“TFL”) and Tesla 2014 Warehouse SPV LLC (the “Borrower”), each a wholly-owned direct or indirect subsidiary of the Company, entered into Amendment No. 2 (the “Warehouse Agreement Amendment”) to the Loan and Security Agreement, dated as of August 31, 2016 (as amended, modified or supplemented, the “Warehouse Agreement”), among TFL, the Borrower, the lenders and group agents party thereto, and Deutsche Bank AG, New York Branch, as administrative agent (the “Warehouse Administrative Agent”). Among other things, the Warehouse Agreement Amendment increased the maximum facility limit under the Warehouse Agreement by $300.0 million, thereby increasing the total facility limit from $300.0 million to $600.0 million, and modified certain terms to facilitate the joinder of certain types of additional lenders, including those in the Citi Lending Group (as defined below).
In connection with the Warehouse Agreement Amendment, the Borrower entered into an Assumption Agreement (the “Assumption Agreement”) with Citibank, N.A., as group agent and certain lenders administered by it (together, the “Citi Lending Group”), and the Warehouse Administrative Agent, pursuant to which, among other things, the Citi Lending Group agreed to a commitment of $300.0 million under the Warehouse Agreement and the lender affiliated with the Administrative Agent transferred one-half of the existing borrowings under the Warehouse Agreement to the Citi Lending Group. As previously disclosed in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 7, 2016, amounts drawn under the Warehouse Agreement bear interest at a rate based on LIBOR plus a fixed margin, or in certain situations based on a rate that is calculated by reference to the prime rate, LIBOR and the federal funds rate, except that amounts borrowed from certain lenders in the Citi Lending Group that issue short-term commercial paper notes to maintain their loans bear interest at a rate based on the rates at which such notes are issued. Together with existing commitments, as of December 15, 2016, the Company had commitments for the full $600.0 million available under the Warehouse Agreement.
Sounds a bit condescending to me Mitch.
Since you chose not to shed light on the subject for me, here's what I understand it to mean in project planning:
Longest sequence of activities in a project plan which must be completed on time for the project to complete on due date.
If that is also your definition, then I think the GF1 squarely falls within that definition when it comes to Tesla and the ramp up of the Model 3 along the revised timeline provided by EM.
If I'm reading this correctly they also added additional 300m in lease financing from 300 to 600 million.
"
On December 15, 2016, Tesla Motors, Inc. (the “ Company ”) and its subsidiary Tesla Motors Netherlands B.V. (“ Tesla B.V. ” and together with the Company, collectively, the “ Borrowers ”), entered into the Fifth Amendment (the “ Credit Agreement Amendment ”) to the ABL Credit Agreement, dated as of June 10, 2015 (as amended, modified or supplemented, the “ Credit Agreement ”), among the Borrowers, the lenders party thereto, and Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and the other agents party thereto. The Credit Agreement Amendment increased the revolving commitments under the Credit Agreement by $200.0 million, thereby increasing the total revolving commitments from $1.0 billion to $1.2 billion, and amended the Credit Agreement to permit the Borrowers to obtain up to $50.0 million of additional commitments pursuant to the terms of the Credit Agreement.
Amendment to Warehouse Agreement; Assumption Agreement
On December 15, 2016, Tesla Finance LLC (“ TFL ”) and Tesla 2014 Warehouse SPV LLC (the “ Borrower ”), each a wholly-owned direct or indirect subsidiary of the Company, entered into Amendment No. 2 (the “ Warehouse Agreement Amendment ”) to the Loan and Security Agreement, dated as of August 31, 2016 (as amended, modified or supplemented, the “ Warehouse Agreement ”), among TFL, the Borrower, the lenders and group agents party thereto, and Deutsche Bank AG, New York Branch, as administrative agent (the “Warehouse Administrative Agent ”). Among other things, the Warehouse Agreement Amendment increased the maximum facility limit under the Warehouse Agreement by $300.0 million, thereby increasing the total facility limit from $300.0 million to $600.0 million, and modified certain terms to facilitate the joinder of certain types of additional lenders, including those in the Citi Lending Group (as defined below).
In connection with the Warehouse Agreement Amendment, the Borrower entered into an Assumption Agreement (the “ Assumption Agreement ”) with Citibank, N.A., as group agent and certain lenders administered by it (together, the “ Citi Lending Group”), and the Warehouse Administrative Agent, pursuant to which, among other things, the Citi Lending Group agreed to a commitment of $300.0 million under the Warehouse Agreement and the lender affiliated with the Administrative Agent transferred one-half of the existing borrowings under the Warehouse Agreement to the Citi Lending Group. As previously disclosed in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 7, 2016, amounts drawn under the Warehouse Agreement bear interest at a rate based on LIBOR plus a fixed margin, or in certain situations based on a rate that is calculated by reference to the prime rate, LIBOR and the federal funds rate, except that amounts borrowed from certain lenders in the Citi Lending Group that issue short-term commercial paper notes to maintain their loans bear interest at a rate based on the rates at which such notes are issued. Together with existing commitments, as of December 15, 2016, the Company had commitments for the full $600.0 million available under the Warehouse Agreement."
Does the last bold part mean that they are already fully draw on this?
Saw that. Looks like a random fluke on a volume of 1, with 364 sell orders sitting on .47 and 11 more on .49. Still don't quite understand how that happens.
Some seller got lucky and some buyer paid too much!
I did something similar a few days ago, had a buy and a sell order in place, and adjusted one thinking it was the other. Bought a pile of shares at the price I wanted to sell at! Panicked, and exited at a small loss. Looking back, it would have actually been a good buy! Weird how that works out.....
MitchJi
Trying to learn kindness, patience & forgiveness
Except that Elon and JB said that it's not.
Which meant that they expected that it be completed well before they need it for the M3. In other words the critical path items are things like obtaining the other parts, setting up the assembly line etc., not producing cellls at the GF.
You still seem to be confusing importance of the cells (of course they are crucial) with the timing of the production.
I think it means they signed up enough "conduit lenders" to fund the $300 million fronted by Citi.
CAFCO LLC
CHARTA LLC
CIESCO, LLC
CRC FUNDING LLC
A crusty old contract negotiator warned me when I first started working "beware of alphabet soup" aka l'argent noir. YMMV.
I'm planning for a purchase at around $50,000 (no Ludicrous) for an M3 unless the stock really doubles next year, then an MX with almost all but Ludicrous mode. Someone near my age wanted an S85. During max acceleration in a drive test last year he fainted, fortunately not while driving.
Chevy Bolt Spotted in the Wild.
I saw my first Chevy Bolt today. It was in a parking lot with EV charging in San Jose. Both the owner and I were in a hurry, so I didn't get to ask him too much about it. He did say he liked the way it drove. I opened up our brief conversation by saying that his must be amongst the first Bolts on the road. He said he's the first to get it from the dealership. I asked if he got it in Fremont and he looked at me quizzically. I shared the fact that the first Bolt released into the wild was done so in the shadow of Tesla's Fremont plant. He laughed and said "oh yeah." I smiled and said it is a shame that it's a compliance vehicle. He then asked if I was associated with GM. Managing not to recoil in horror, I said "no," I'm a six figure investor in TSLA and have a Model 3 reservation." He seemed to stiffen at that response and I tried to ease any tension by telling him his Bolt looked good and that this isn't a zero sum game and the market needs all the EVs it can produce. That seemed to work. Truthfully? I was struck by how small it was. The photos don't do a good job of providing scale. I walked back out to the lot an hour later to take a photo of it because it was parked two stalls down from a Tesla S. It would have been a nice contrast. Alas, while the Tesla was still juicing, the Bolt had...bolted. Final thought? It looked awfully similar to the Ford Focus electric that was parked in the same stall when I went back to capture a photo of it.
I saw my first Chevy Bolt today. It was in a parking lot with EV charging in San Jose. Both the owner and I were in a hurry, so I didn't get to ask him too much about it. He did say he liked the way it drove. I opened up our brief conversation by saying that his must be amongst the first Bolts on the road. He said he's the first to get it from the dealership. I asked if he got it in Fremont and he looked at me quizzically. I shared the fact that the first Bolt released into the wild was done so in the shadow of Tesla's Fremont plant. He laughed and said "oh yeah." I smiled and said it is a shame that it's a compliance vehicle. He then asked if I was associated with GM. Managing not to recoil in horror, I said "no," I'm a six figure investor in TSLA and have a Model 3 reservation." He seemed to stiffen at that response and I tried to ease any tension by telling him his Bolt looked good and that this isn't a zero sum game and the market needs all the EVs it can produce. That seemed to work. Truthfully? I was struck by how small it was. The photos don't do a good job of providing scale. I walked back out to the lot an hour later to take a photo of it because it was parked two stalls down from a Tesla S. It would have been a nice contrast. Alas, while the Tesla was still juicing, the Bolt had...bolted. Final thought? It looked awfully similar to the Ford Focus electric that was parked in the same stall when I went back to capture a photo of it.
Gerasimental
Member
Sorry totally off topic. Would it be considered normal in America to tell a complete stranger the size of your investment portfolio, or any element of your net worth, without being asked about it?
Any thoughts on the interest rate for " amounts borrowed from certain lenders in the Citi Lending Group that issue short-term commercial paper notes to maintain their loans bear interest at a rate based on the rates at which such notes are issued."
Apparently the entire Warehouse line, including the $300 million increment just disclosed, must still be repaid in August 2018. Two year direct leases are a gamble since no one gets the $7,500 credit, and the lessees will likely return the cars at the end of the lease term.
(If I were Jason I would have lobbied against making SCTY a wholly-owned subsidiary--"cash is king"--at least the current structure allows chopping off that anchor without sinking the entire enterprise.)
I think that's a very likely possibility, or his many years of irrational Tesla fuming on free sites getting noticed by some sizable players and leading to him being preyed on for unpaid shilling. that is, his conspicuous Tesla bashing on Twitter and SA might have had some other players realize that they could line him up for some high profile shilling gigs without even having to pay him (i.e., "this bloke is so out of his mind against Tesla, we can tee him up for some TV spots, and he will endlessly talk with passion about how Musk and Tesla are shams... and we won't even have to pay him! bwah-ha-ha). . there are multiple VERY LARGE interests looking to smear Tesla, and their using him seems a more likely path for him to get spots on CNBC and substantial investment conferences than his "credentials" of $10 million of assets "under management", and having been wrong on Tesla for years (I believe someone reported on here that he's bearish since the IPO).
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Saw this picture in Electrek today. I had not seen the Bolt from a side view like this before. It really looks tiny and ugly. I'm all for more EVs, but you have to be a moron of epic proportions to think that this is competition for the Tesla Model 3....
this article indicates two arrangements to increase available cash, one accessing $200 million more (and potentially $50 million more beyond), and another accessing $300 million.
Tesla Boosts Credit Lines Again to Aid Elon Musk Expansion
I would imagine this buys Tesla at least another quarter of waiting to see if they need to do any larger fund raising. if they can avoid another round, great, if they can push it out months, quite probably very good as they will have more favorable terms (i.e. loan terms and/or secondary price) if Model 3 is reasonably on track.
mmd
Active Member
@brian45011, What do you think this expanding credit line means in 1-2 years? Instead of the predicted cap raise, Tesla is continually increase the ABL lines. Wonder how long they can keep expanding these, and if this is better than a capital raise.
Tesla Boosts Credit Lines Again to Aid Elon Musk Expansion
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