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.
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.
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