Bond investors Give A $1.8 Billion Boost To Tesla Inc’s.

“Bond investors on
Friday gave a $1.8
billion boost to Tesla
Inc’s ( TSLA.O) balance
sheet by snapping up
the electric car maker’s first foray into the U.S. junk bond market, where yield-hungry investors have raced to lock in relatively higher
returns.

Those robust returns,
however, have shrunk
as a strong reservoir of cash ready to deploy in the riskiest areas of the high-yield fixed income market has pushed them to near their lowest levels in three
years. That has given
junk-rated issuers such as Elon Musk’s U.S. car company the
opportunity to raise
cash cheaply.

Tesla sold $1.8 billion
of eight-year
unsecured bonds at a
yield of 5.30 percent,
the Palo Alto,
California-based
company said in a
filing with the Securities and
Exchange Commission.
The bond was sold at
par, according to a
source familiar with
the transaction, who
requested anonymity
because the detail was not publicly disclosed.

Tesla initially wanted
to sell $1.5 billion
worth of debt but
enlarged the offering
because of overwhelming
demand, according to
IFR, a Thomson Reuters unit. The yield was slightly higher than the 5.25 percent cited at the initial launch…”

MORE at:

https://www.reuters.com/article/us-usa-bonds-tesla-idUSKBN1AR28M

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