Tesla (NASDAQ:TSLA) edges higher in after-hours trading, having hit another record high, at $265, in Wednesday’s regular trading session, after it files to sell $1.6 billion in convertible debt. Of the total offering, the luxury electric car maker will offer $800 million aggregate principal amount of convertible senior notes due 2019 and $800 million aggregate principal amount of convertible senior notes due 2021.
Tesla intends to use the net proceeds from the offering to accelerate the growth of its business in the U.S. and internationally, for the development and production of its “Gen III” mass market vehicle, the development of the Tesla Gigafactory and other general corporate purposes. The company said it is considering Arizona, Nevada, New Mexico or Texas for its planned Gigafactory battery plant. In addition, Tesla intends to grant the underwriters a 30-day option to purchase up to an additional $120 million in aggregate principal amount of convertible senior notes due 2019 and an additional $120 million in aggregate principal amount of convertible senior notes due 2021, for a total potential offering size of up to $1.84 billion.
The convertible senior notes due 2019 will be convertible into cash, shares of Tesla’s common stock, or a combination thereof, at Tesla’s election. The convertible senior notes due 2021 will be convertible into cash and, if applicable, shares of Tesla’s common stock (subject to Tesla’s right to deliver cash in lieu of such shares of common stock). The interest rate, conversion rate and other terms of the notes are to be determined. TSLA is up 1.4%, at $256.57, just shy of the all-time high of $265 it hit during regular trading.
It earned $0.03 per share, up from a penny a year earlier. Nektar Therapeutics (NASDAQ:NKTR) is trading 12.4% lower at $12 in evening session as the biopharmaceutical company reports disappointing Q4 results compared to analyst consensus. NKTR reports a Q4 2013 loss of $0.41 per share, compared to a loss of $0.46 per share in Q4 2012. Revenues for the quarter were $31.1 million, compared to $21.1 million in Q4 the year prior. Analysts polled by Capital IQ were expecting a Q4 loss of $0.30 on revenues of $49.2 million.
Hudson Technologies (NASDAQ:HDSN) says Q4 sales were $4.8 million, better than the Thomson Reuters mean for $3.10 million. Net loss was $0.06 per share, better than estimates for a loss of $0.07.
Insignia Systems (NASDAQ:ISIG) says Q4 sales were $6.9 million, up from $5.3 million a year ago. Solazym (SZYM) says Q4 sales were $11.3 million, below the Thomson Reuters mean for $12.11 million. Non-GAAP net loss was $0.40 per share, worse than forecasts for a $0.38 loss.