Firm Advises Daimler in Equity Collar Deal for Its Tesla Stake

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Hughes Hubbard helped Daimler AG, the maker of -Benz , secure its investment in Tesla Motors with a three-year equity collar deal.

Under the terms of the deal that was completed on Dec. 20, 2013, Daimler, which holds a 4.3 percent stake in the California-based electric- maker, protected itself against signicant uctuations in the price of Tesla's stock for the next three years.

Hughes Hubbard represented Daimler in its initial investment in Tesla and in subsequent equity-raising rounds by Tesla. Tesla, which developed the rst highway-capable in North America and Europe, makes electric vehicles with exceptional design, performance and eciency. Tesla develops the complete drivetrain for the Mercedes-Benz B-Class Electric Drive, which is expected to be launched later this year.

Andrew Fowler, Gary Simon and Arinze Ike represented Daimler.

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Andrew F. Fowler Gary J. Simon

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