Tesla To Pay Back Department of Energy Loan Through Stock Sale

Tesla Motors, Inc. has announced its plan to pay back the Department of Energy by offering almost 3 million shares of common stock, as well as $450 million aggregate principal amount of convertible senior notes. The automaker has granted the underwriters a 30-day option to purchase up to an additional 405,454 shares of common stock and $67.5 million in aggregate principal amount of the notes. Elon Musk, Tesla CEO and cofounder, intends to purchase shares of common stock for an aggregate purchase price of $100 million, with $45 purchased from the common stock offering, and the remaining $55 million purchased directly from Tesla. Among other things, the automaker intends to use the proceeds to prepay Tesla's outstanding loan from the Department of Energy. Tesla intends to enter the note transactions and warrant transactions over the offering stock price. The notes will be able to be converted into cash, and possibly shares of Tesla common stock. Goldman, Sachs & Co. will be the sole book-keeping manager for the common stock, and will be joined by Morgan Stanley and J.P. Morgan to manage the note offerings. Source: Tesla
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