Tesla Inc. TSLA,
Last week there was high demand for a bond deal tied to the leases of its electric vehicles, the first of its kind during the pandemic. As investors piled up orders on the 8-tranche bond deal, the automaker was able to borrow more than $ 700 million at cheaper levels than initially anticipated. Specifically, its largest $ 215 million slug of AAA-rated bonds maturing in 1.1 years cleared the market by a spread of 35 basis points above a risk-free benchmark to yield 0.56%. Earlier in the week, investors had a slightly meatier spread in the 50-55 basis point area as bankers attempted to increase interest in the offering. The spread is the level that investors earn in bonds on a risk-free benchmark, such as US Treasury bonds. [S: tmubmusd10y]. Tesla’s riskiest class of 2.71-year-old Ba2-rated bonds was offset by a 4.6% yield, according to an investor who tracks the offering. Tesla shares fell 0.8% on Thursday, as did much of the broader stock market, after data showing that US second quarter gross domestic product fell 32.9 %. The shares have still outperformed the year, up 255.6%.
.
