Tesla (TSLA) Stock Jump Could Help its Debt Burden - Bloomberg

A Bloomberg article highlights that the jump in Tesla's (NASDAQ: TSLA) stock, following Elon Musk's 'take-private' tweet, could help the company alleviate some of its debt burdens after the equity moved above a conversion price on some convertible notes.

A $920 million convertible note due in March has a conversion price of $359.87 per share, the article noted. Shares were $18 below that price yesterday and now easily surpass it - last trading at $372.16.

“They want you to ask for the stock and not for your cash back" upon maturity, Chris Hartman, a senior portfolio manager at Aegon Asset Management was quoted as saying. "They might not have the cash on the balance sheet to pay you back. They need that cash for working capital needs.”

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