Tesla makes debut in junk-bond market
New York
ELECTRIC car pioneer Tesla announced its junk-bond debut with a US$1.5 billion, eight-year NC3 bond offering and roadshows starting on Monday, according to two lead bankers on the deal.
The company said that net proceeds are intended to be used to strengthen its balance sheet as it ramps up the launch of its Model 3 car, and for general corporate purposes.
Tesla CEO Elon Musk said on a conference call on Aug 2 that there were 518,000 gross reservations for the Model 3, according to Reuters.
The bond is expected to price after a series of investor meetings that conclude in California on Aug 10.
Goldman Sachs, Morgan Stanley, Barclays, Bank of America Merrill Lynch, Citigroup, Deutsche Bank, and RBC are the bookrunners on the deal. IFR
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