By Richard LeongNEW YORK: Bond investors on Friday gave a $1.8 billion boost to Tesla Inc's balance sheet by snapping up the electric car maker's first foray into the U.S. junk bond market, where yield-hungry investors have raced to lock in relatively higher returns. Tesla sold $1.8 billion of eight-year unsecured bonds at a yield of 5.30 percent, the Palo Alto, California-based company said in a filing with the Securities and Exchange Commission. The bond was sold at par, according to a source familiar with the transaction, who requested anonymity because the detail was not publicly disclosed. Standard & Poor's assigned a B-minus on Tesla's junk bond issue, while Moody's Investors Service rated it B3. Tesla might have picked just the right time to become a junk bond issuer.

Source: Economic Times August 12, 2017 08:48 UTC