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Tesla Reportedly Offers to Repay Debt in Half Cash, Half Stock

“Tesla has $920 million in debt due to be repaid in March, and it’s offering a deal to settle up in a mix of cash and stock” writes Annie Gaus for thestreet.com. According to a notice seen by Bloomberg, the electric-car company notified bondholders on Nov. 30 that if they opt to convert the debt, they’ll be paid in a mix of half cash and half stock.On Tesla’s October earnings call, CEO Elon Musk said Tesla’s plan for settling the debt was to repay it instead of refinancing.The equity-conversion price for the debt is $359.88 per share, and Tesla was trading at $363.06 as of Thursday’s market close.Other than the $920 million due in March, Tesla has about $10 billion more in longer-term debt that matures over the next several years.
 
Source: thestreet.com



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