(Bloomberg) -- Tesla Inc. is premarketing a $783 million debt sale backed by prime borrowers’ car leases, which would join a recent surge in automotive asset-backed securities.
The deal, being run by Societe Generale, would be the electric-vehicle maker’s second transaction of the year and is expected to price next week, according to a person familiar with the matter who asked to be identified as they’re not authorized to speak publicly. March’s $750 million deal had a 5.53% coupon on its top tranche.
Societe Generale and Tesla didn’t immediately respond to requests for comment.
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Tesla has been a regular user of the ABS market like other major US automakers, but hasn’t tapped the securitization pathway as often as its counterparts. Tesla securitizations neared $4 billion last year, its most yet. Ford Motor Co. priced a $1.7 billion deal Thursday.
ABS activity, like other parts of US debt markets, have seen issuance soar this year as interest rates have started falling and spreads have narrowed. ABS issuance is approaching 2021’s record.
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