The company issued
junk debt earlier this year at 5.35 %, issues which still yield more than 300 basis points more than comparable U.S. Treasuries.
Not exact matches
Moody's Investor Service downgraded Tesla's
debt into
junk territory back in March, warning at the time that Tesla didn't have cash to cover $ 3.7 billion for normal operations, capital expenses and
debt that come due
early next year.
The Obama Administration's Wall Street managers have kept the
debt overhead in place — toxic mortgage
debt,
junk bonds, and most seriously, the novel web of collateralized
debt obligations (CDO), credit default swaps (almost monopolized by A.I.G.) and kindred financial derivatives of a basically mathematical character that have developed in the 1990s and
early 2000s.
Moody's Investors Service, which downgraded Tesla's credit rating further into
junk in March, still expects Tesla will need to raise about $ 2 billion selling equity, convertible bonds or
debt, to offset the cash it burns this year and securities maturing through
early 2019.