Tesla is issuing new shares and debts to repay US loan faster

Article by Anita Panait, on May 16, 2013

Tesla Motors Inc. is issuing 2.7 million new shares as well as convertible senior notes as part of its bid to repay a $465-million loan taken out from the U.S. Energy Department faster than planned, according to a US regulatory filing made by the carmaker. The proceeds from the sale of the new shares – worth $229 million at today's $84.84 closing price – as well as from the sale of convertible senior notes due in 2018 worth $450 million will be used to repay the federal loan and interest.

Tesla said that the Energy Department has already agreed to the modified terms. Tesla's move to issue new shares comes after the carmaker posted last week its first quarterly profit, resulting to a record-breaking surge of its shares.

The carmaker disclosed in March 2013 an arrangement to repay its $465 million U.S. loan in five years, rather than the original 10-year period. The carmakers revealed last week that it repaid around $13 million of the loan in the first quarter of 2013.

Tesla chief executive Elon Musk is intending to buy $100 million of shares of common stock at the same public offering price, acquiring around $45 million in the public sale and about $55 million in a private placement.

Tesla is expecting to raise about $830 million in fresh funds from the issuance of the new shares and convertible senior notes.

Topics: tesla

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

In Japan, Toyota stays in the limelight by always cooking up something new for its famous 86 sports car. A colour orange Toyota 86 performance edition is one that’s hard...
by - December 4, 2016
Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries