Tesla (TSLA) Issues $1.6 Billion Convertible Notes to Fund Gigafactory

Tesla (TSLA) just announced in a press release the offering of $1.6 billion in convertible senior notes in an underwritten registered public offering.

The company said that of the total offering, Tesla will offer $800 million of notes due 2019 and $800 million due 2021. In addition, the Palo Alto, California-based company intends to grant the underwriters a 30-day option to purchase up to an additional “$120 million in aggregate principal amount of convertible senior notes due 2019 and an additional $120 million in aggregate principal amount of convertible senior notes due 2021, for a total potential offering size of up to $1.84 billion.”

Tesla also said that it intends to use the proceeds from the sale to fund its “Gigafactory“, the development of its “Gen III” mass market vehicle and other general corporate purposes.

TSLA advanced 2.2 percent to $253 at the close today in New York.

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