Tesla units enter up to $300 million loan agreement with Deutsche Bank

By Wendy Van Sickle

Columbus, Ohio, Sept. 7 – Tesla Motors, Inc. wholly owned subsidiaries Tesla Finance LLC and Tesla 2014 Warehouse SPV LLC entered into an up to $300 million loan and security agreement with Deutsche Bank AG, New York Branch on Aug. 31, according to an 8-K filing with the Securities and Exchange Commission.

The warehouse agreement will support the Tesla Finance direct vehicle leasing program. The borrowers may draw under the agreement through Aug. 31, 2017. The full amount outstanding under the agreement will be due Sept. 20, 2018.

Borrowings bear interest at Libor plus a fixed margin, currently resulting in an interest rate of about 2%. There are also fees on the unused portion of the commitment, although they were not specified in the filing.

The loan is secured by a certificate representing the right to the proceeds of a pool of lease contracts held directly by Tesla Finance’s statutory titling trust that are allocated from time to time to such certificate and the related leased vehicles.

No amounts were drawn under the agreement at closing.

Based in Palo Alto, Calif., Tesla makes and sells electric vehicles and electric vehicle powertrain components.

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