Tesla to go ahead with its USD1.5 billion senior notes issuance


Following the announcement of Tesla’s proposed $1.50 billion senior notes offering on August 7, 2017, Tesla has announced that it has agreed to issue and sell $1.80 billion in aggregate principal amount of senior notes due in 2025 (the “Notes”), representing a 20% upsize.

The Notes will have an annual interest rate of 5.30%, and the transaction is expected to close on August 18, 2017, subject to customary closing conditions.

Tesla intends to use the net proceeds from this offering to strengthen its balance sheet during this period of rapid scaling with the launch of Model 3 and for general corporate purposes.