Tesla Capital Structure: Risks and Opportunities

Tesla has a $50B equity market cap, but its unsecured bonds are trading at stressed levels. ... So what’s the disconnect? This course will explore the relationship between debt and equity tranches and demystify a key distressed debt investment strategy. Using Tesla as our case study, attendees will learn: The process for identifying relative mis-pricing across a stressed company’s capital structure; How we can use the Bloomberg Terminal to quickly develop a back-of-the-envelope capital structure arbitrage opportunity; How a company’s debt covenants hold the key to understanding the relative position of different tranches of debt, equity and other claims on the business.