Sale oversubscribed from $1.5B to $1.8. Covenants added to exclude main asset, the Gigafactory from collateral. No call protection, No Problem? Interest rate 5.25%, which is in line with high yield Junk bond etfs like HYG and JNK so it's a market not even a Tesla thing. Nautilus can claim actual capital like the sea floor tools and maybe even the lease for the PSV as collateral which seems as good as the Tesla Collateral, to me anyway. Not to mention more or less solid ocean research and permissions from the government of PNG. So there is hope investors desperate for yield hand over some cash on good enough terms.
Tesla's $1.8 billion in new bonds are riskier than usual
-”Gigafactory 1 (the Sparks, Nevada facility) can be liened up outside of this covenant without triggering the equal and ratable clause,” said Potenza. “Given its importance to the business, this is a significant omission from the scope of the liens covenants.”
Finally, the notes don’t even have the call protection of an investment-grade bond, which means the company could refinance them at a lower level in a few years time.
http://www.marketwatch.com/story/mind-th...2017-08-10