Tesla Gets Aggressive in Debt and Equity Offer

May 18
10:05 AM 2013

In a cavalier move reminiscent of the personality of its chairman Elon Musk, Tesla Motors has increased its debt and equity offers to capitalize on the increasing appetite of investors for high yield investments. With the move, the company expects to raise nearly US$1 billion in cash.

The US electric carmaker said that it had increased its convertible bond offer from the initial US$450 million to US$525 million and to its final US$600 million. The Model S maker also finalized its share price of its planned sale of 3.39 million common shares of stock at US$92.24 per share. It had originally owned to sell just 2.7 million shares.

Including overallotment options to the underwriters on both debt and stock offers, the total fund raising projection can reach US$1.02 billion. The bookrunner for the debt and equty sale is Goldman Sachs.

Just last week, the company reported an US$11 million profit for the period of January to March 2013, its first profit announcement in the decade long existence of Tesla. 

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