Tuesday, September 25, 2012

Tesla to Offer More Shares, May Need to Amend Department of Energy Loan Covenant (TSLA)

Following up on this morning's "Tesla Cuts Rev View On Slow Model S Ramp; Shrs Slump" (TSLA)"'.
After faking a recovery while the market was up the stock is now faring worse than it was in the pre-market session, off 9.95% at $27.61.
Here's an interesting snip from Bloomberg's coverage via the San Francisco Chronicle:
...Tesla, whose investors include Toyota Motor Corp. (7203) and Daimler AG (DAI), said it now expects to exceed its plan to produce 20,000 of the electric cars next year, when it projected it would earn its first profit.

Energy Department
The company amended its loan agreement with the U.S. Energy Department and may need to do so again if it fails to raise enough money from investors.

“We currently anticipate that without raising capital in addition to this offering, we would need to seek an amendment from the DOE to modify the total liabilities to stockholder equity covenant for the quarter ending March 31, 2014, and the two subsequent quarters,” the company said in the filing.
Tesla has said it plans to begin repaying its Energy Department loans in the fourth quarter. There are no changes to payment terms, Evanson said in the e-mail.

In a separate filing, Telsa said it plans to sell 4.34 million additional shares and expects to receive net proceeds of $128.3 million, or $147.6 million if the underwriter, Goldman Sachs Group Inc. (GS), exercises its option to purchase additional shares in full.