Tesla Motors, Inc. (TSLA) Wednesday announced offering of 2.703 million shares of common stock and $450 million aggregate principal amount of convertible senior notes due 2018 in concurrent underwritten registered public offerings.
Additionally, Elon Musk, CEO and co-founder of Tesla, will purchase the company's shares at the same public offering price for an aggregate purchase price of $100 million.
The underwriters have been granted 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.
The offerings are expected to generate gross proceeds of approximately $830 million, which will be available for prepaying Tesla's outstanding loan from the U.S Department of Energy, pay the cost of convertible note hedge transactions and for general corporate purposes.
Tesla is also planning to enter into convertible note hedge transactions and warrant transactions which are generally expected to prevent dilution up to 100 percent over the offering stock price.
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