Summary
This 8-K filing by Tesla, Inc. (TSLA) from June 29, 2017, details an amendment to its Revolving Aggregation Credit Facility. The amendment, effective June 23, 2017, extends the availability period of draws to December 31, 2018, and the maturity date to December 31, 2019. Notably, the total lender commitments under this facility were decreased to $600 million.
Key Highlights
- 1Amendment to the Revolving Aggregation Credit Facility entered into on June 23, 2017.
- 2Extended availability period for draws to December 31, 2018.
- 3Extended maturity date to December 31, 2019.
- 4Reduced total lender commitments under the facility to $600 million.
- 5The credit facility is secured by assets and cash flows of certain SolarCity subsidiaries.
- 6The facility is non-recourse to Tesla's overall assets and cash flows.
- 7The reduction in commitment aligns with Tesla's shift towards cash/loan sales and securitization for solar assets.
Frequently Asked Questions
It is an amendment to a credit facility originally established on May 4, 2015, that allows Tesla's wholly-owned subsidiary to borrow funds. The amendment extends the facility's usage period and maturity date, and reduces the total amount available.
Tesla reduced the commitments to $600 million to better align with its evolving business strategy. This strategy involves a greater emphasis on cash and loan-based sales for solar assets and more frequent securitization transactions for leased solar assets.
No, the filing explicitly states that the Revolving Aggregation Credit Facility is non-recourse to Tesla's overall assets and cash flows. It is secured by specific assets and cash flows from certain SolarCity subsidiaries.
The maturity date for the Revolving Aggregation Credit Facility has been extended to December 31, 2019.