Tesla Inc on Friday was set to raise up to $2.7 billion in a record-setting capital raising for the electric carmaker, as investors scooped up a mix of new stock and convertible notes that will recharge the company
(Reuters) – Tesla Inc on Friday was set to raise up to $2.7 billion in a record-setting capital raising for the electric carmaker, as investors scooped up a mix of new stock and convertible notes that will recharge the company’s cash-depleted balance sheet.
The company said in a filing that it had increased its offer to 3.1 million shares, rising to 3.5 million including a tranche for underwriting banks, from an initially planned 2.7 million, priced at $243 per share.
The filing also showed it would place convertible debt worth $1.6 billion, up from an initial planned $1.35 billion. That all pointed to buoyant interest in the offering and shares in the company rose 2.5 percent in morning trading.
The coupon for the debt offering, however, was set at 2.0 percent – the top of the indicated range – suggesting the company had ceded ground to investors to borrow so much.
The conversion premium at which the bonds can be exchanged for stock in the future, was also at the bottom of the initial range given by the company – another concession.
