Tesla looking to repay debt faster
Taking just five years rather than the original 10-year period, Tesla Motors could become the first automaker to repay its loan awarded under the Advanced Technology Vehicles Manufacturing program that was implemented by U.S. President Barack Obama in 2009.
The company, which made a payment of about $13 million in the first quarter of 2013, said that proceeds from selling 2.7 million shares (valued at $249 million at Wednesday’s $92.25 closing price) and $450 million in convertible senior notes due in 2018 will go to pay off its $465 million loan with interest and fund other operations.
Tesla’s market capitalization totalled $10.62 billion as of Thursday’s close, higher than the $8.6 billion for Fiat S.p.A., majority owner of Chrysler Group.
Nissan, Ford, and Fisker Automotive also received a loan from the federal government in 2009. However, Fisker is now at risk of bankruptcy after missing a payment in April.
Source : www.autonews.com
|Photo: Sébastien D’Amour|