Tesla in key bond of­fer­ing

China Daily (Hong Kong) - - BUSINESS -

Tesla an­nounced on Mon­day it in­tends to raise $1.5 bil­lion in a key bond of­fer­ing, as the US lux­ury elec­tric au­tomaker seeks to fund pro­duc­tion of its new Model 3 sedan. Tesla share, which have risen 67 per­cent this year, ticked down 0.49 per­cent to close at $355.17 on Mon­day af­ter the an­nounce­ment. The debt of­fer­ing marks Tesla’s de­but in the junk bond mar­ket. Moody’s is rat­ing the bond B3 with a sta­ble out­look and Stan­dard & Poor’s as­signed the is­sue a B-rat­ing. Tesla said it in­tends to use the net pro­ceeds from the of­fer­ing to fur­ther strengthen its balance sheet dur­ing a pe­riod of rapid up­scal­ing with the launch of Model 3, and for gen­eral cor­po­rate pur­poses.

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