Summary
This 8-K filing from Tesla Motors, Inc. on June 12, 2015, primarily reports the entry into a new Asset-Based Lending (ABL) Credit Agreement. The agreement establishes a senior secured revolving credit facility of up to $500.0 million, with an option to increase by an additional $250.0 million, bringing the potential total to $750.0 million. This facility, which matures in June 2020, is designed to provide the company with working capital and for general corporate purposes. The ABL facility's availability is tied to the valuation of specific company assets, including inventory and accounts receivable. The agreement involves a syndicate of major financial institutions as lenders, including Deutsche Bank, Bank of America, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo. The facility is secured by Tesla's assets and includes provisions for interest rates, commitment fees, and covenants typical for such financing.
Key Highlights
- 1Tesla Motors entered into a new $500 million senior secured asset-based revolving credit facility, with a potential to expand to $750 million.
- 2The credit facility is provided by a syndicate of prominent banks including Deutsche Bank, Bank of America, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo.
- 3Proceeds from the credit facility are intended for working capital and general corporate purposes.
- 4The facility has a maturity date of June 10, 2020.
- 5Availability under the credit facility is based on the value of specific assets like inventory and accounts receivable.
- 6The credit agreement includes standard covenants and events of default, with provisions for security interests granted over company assets.
- 7No amounts were outstanding under the credit facility as of the closing date.