UPDATE 1-Tesla aims to raise $830 mln in stock, debt to repay U.S. loan

Wed May 15, 2013 6:00pm EDT

May 15 (Reuters) - Tesla Motors Inc, which posted its first-ever quarterly profit last week, said on Wednesday that it aims to raise $830 million through a stock and debt offering that will be used to repay its U.S. Department of Energy loans with interest.

Chief Executive Elon Musk, who has led the company since October 2008, will personally buy Tesla shares worth $100 million as part of this latest fundraising round.

The offering comes at a time when Tesla shares are handily outperforming the Nasdaq. Since reporting first-quarter earnings on May 8, Tesla shares have risen about 50 percent, while the index has risen just 2 percent.

Tesla said it will use the proceeds from the offerings to repay the remaining portion of its $465 million DOE loan, pay the cost of convertible note hedge transactions and for general corporate purposes.

The electric carmaker will offer 2.7 million common shares as well as $450 million in convertible senior notes due in 2018. Tesla has also granted its underwriters a 30-day option to buy an additional 405,454 common shares and $67.5 million in notes.

Musk, who is also a Tesla cofounder, will buy common shares at the same public offering price. About $45 million would be bought through the common stock offering announced on Wednesday and another $55 million would be purchased directly from Tesla in a subsequent private placement, the company said.

The gross proceeds of the offerings, including the options granted to the underwriters, and the private placement is expected to be about $830 million.

Tesla has emerged as a surprising bright spot in the "green" car industry, which has seen a number of high-profile failures and struggles over the last year.

Short interest in Tesla has subsided, but many investors question the company's fundamentals and the current run-up in the stock.

In 2012, Tesla began selling the Model S electric sedan, marking its first attempt to reach a more mainstream market for electric cars. The company expects to deliver 21,000 Model S cars worldwide this year, more than many investors expected.

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A tourist takes a plunge as she swims at Ngapali Beach, a popular tourist site, in the Thandwe township of the Rakhine state, October 6, 2013. Picture taken October 6, 2013. REUTERS/Soe Zeya Tun (MYANMAR - Tags: SOCIETY) - RTR3FOI0

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