Tesla Enters into Deals for $30B of Credit and Loan Facilities

Tesla entered into three separate agreements totaling $30 billion for credit and loan facilities.

The electric-vehicle company entered a loan credit agreement for a $20 billion senior unsecured three-year delayed draw term loan facility with Citibank, according to a Securities and Exchange Commission filing on Tuesday.

It also signed a deal for an $8 billion senior unsecured five-year revolving facility and a $2 billion senior unsecured 364-day revolving credit facility, both with Wells Fargo. Tesla can increase the total commitments under the two agreements by up to an additional $4 billion.

Tesla may draw upon the $20 billion facility from time to time, but no more than 10 times during the 18-month period following the closing date. Loans outstanding will mature on Sept. 29, 2029, according to the filing.

The undrawn commitments on that facility will be automatically reduced to $10 billion on the first anniversary of the closing date, and to $5 billion 15 months after the closing date. Any remaining undrawn commitments will terminate 18 months after closing.

Loans under the $8 billion facility may be denominated in U.S. dollars, pounds sterling or euros. The facility provides for the issuance of letters of credit in an aggregate amount of up to $500 million, according to the filing.

The facility also terminates on Sept. 29, 2031, at which time all outstanding loans and other amounts under the agreement will become due and payable. Tesla can request up to two one-year extensions on the facility.

The $2 billion facility terminates on Sept. 28, 2027 and is denominated in U.S. dollars.