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SolarCity 2.75% notes to be convertible into Tesla shares after merger
By Marisa Wong
Morgantown, W.Va., Nov. 21 – SolarCity Corp. said it entered into a supplemental indenture on Monday to amend its 2.75% convertible senior notes due 2018 in connection with its merger with Tesla Motors, Inc.
Once the merger takes effect, the noteholders’ right to convert their notes into shares of SolarCity common stock will change to a right to convert each $1,000 principal amount of notes into 1.7838 shares of Tesla’s common stock.
The new conversion rate is equivalent to the number of shares of Tesla stock that a holder of a number of shares of SolarCity stock equal to the conversion rate in effect before the merger would be entitled to receive upon completion of the merger.
SolarCity is a San Mateo, Calif., provider of clean energy. Based in Palo Alto, Calif., Tesla makes and sells electric vehicles and electric vehicle powertrain components.
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