Some of these occurrences, followed by administration of terminology, manage terminate this new margin mortgage contract, plus the entire $a dozen

Regards to the fresh margin mortgage

The borrowed funds is actually for a time period of 36 months and you can holds mortgage loan out-of “3-few days title SOFR + 3%” (i.e. 4.78% currently), and a front-stop fee regarding 0.5%.

The borrowed funds might be margin-entitled if your loan so you can well worth ratio has reached thirty-five%, of which area Musk would have 2 days ahead right up which have bucks to attenuate the mortgage so you’re able to well worth proportion on reset number of twenty-five%. Pledging a lot more shares to boost the fresh new guarantee isn’t permitted.

And in case an opening value of $1,000 for every single display, the margin telephone call appear within a percentage price of $571, of which part Musk would have to find $2.six million to reduce brand new outstanding number of the mortgage and you will offer the borrowed funds to help you value ratio down to the fresh reset level.