Simpson Thacher represented the initial purchasers, led by Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC, in connection with Tesla, Inc.’s offering of $1.8 billion aggregate principal amount of its 5.3% Senior Notes due 2025. The transaction represents Tesla’s inaugural offering of high yield notes. Simpson Thacher has now acted as counsel for the banks in 12 separate equity, debt and bank financing transactions undertaken by Tesla, including Tesla’s 2010 IPO, representing more than $10 billion in total proceeds.
Tesla intends to use the net proceeds from the offering to further strengthen its balance sheet during a period of rapid scaling with the launch of Model 3 and for general corporate purposes.
Tesla’s mission is to accelerate the world’s transition to sustainable energy. California-based Tesla designs, develops, manufactures, leases and sells high-performance fully electric vehicles, solar energy generation systems and energy storage products.
The Simpson Thacher team included Kevin Kennedy, Bill Brentani, Dan Webb, Kim de Glossop, Karen Reyes and Jeremy Bethel (Capital Markets); Jonathan Cantor and Tanvi Mirani (Tax); Jennie Getsin (Blue Sky); and Marissa Lambert (Intellectual Property). Summer Associate David Wuchenich also provided invaluable assistance.