Tesla Raising Money to Pay Back DOE Loan
Good news for taxpayers. IBD:
Tesla’s announcement of a new stock and notes offering, partly to pay back an Energy Department loan early and with CEO Elon Musk’s participation, boosted its shares more than 5% after hours Wednesday. The electric car maker’s stock was up 1.9% during the regular session, and 150% for the year through Wednesday.
After failures of government-backed energy outfits such as solar manufacturer Solyndra, and amid the shaky status of that other federal loan-funded luxury electric car maker — Fisker Automotive — Tesla Motors (TSLA) chief [Elon] Musk has been intent on getting Tesla’s own government loan balance down, and fast.
The company said in a press release emailed after the market close that it expects to raise about $830 million through public offerings of about 2.7 million shares of common stock and $450 million in convertible senior notes due 2018, as well as through options granted to underwriters and private placement.
“Tesla intends to use the net proceeds from the offerings to prepay Tesla’s outstanding loan from the United States Department of Energy, pay the cost of convertible note hedge transactions and for general corporate purposes,” the company said in its announcement.
The rest here.