Electric-car pioneer Tesla is expected to price its debut junk bond on Friday, according to a lead on the deal.
The borrower is approaching investors with a US$1.5bn eight-year non-call three bond that is being talked with a yield in the area of 5.25%.
Books for most investors close today at 4pm, and at 11am on Friday for accounts in Los Angeles.
Proceeds will go toward strengthening Tesla’s balance sheet as the company launches its new Model 3 car.
Lead bookrunner is Goldman Sachs, with Morgan Stanley, Barclays, Bank of America Merrill Lynch, Citigroup, Deutsche Bank and RBC also acting as bookrunners.
Corporate ratings are B2/B-, while the deal is rated B3/B-.
