Price talk has been set at 5.25% area for Tesla’s eight-year non-call three debut junk-rated bond, according to a lead on the deal.
Tesla is roadshowing the deal with investors until Thursday, with the deal slated to price thereafter.
Underwriters on the deal were originally planning to bring it around September or October, and were discussing a level of around 6%, an investor following the transaction told IFR.
Investors told IFR they expected Tesla’s bonds to eventually price inside 5%.
Goldman Sachs, Morgan Stanley, Barclays, Bank of America Merrill Lynch, Citigroup, Deutsche Bank and Royal Bank of Canada are bookrunners.
Tesla plans to use the proceeds to strengthen its balance sheet as it ramps up the launch of its Model 3 car and general corporate purposes.