US electric car manufacturer Tesla Motors has signed its first asset-based syndicated revolving credit facility (RCF) for an amount of US$500mn.

The five-year facility was provided jointly by Deutsche Bank, Bank of America, Goldman Sachs, JP Morgan Chase, Morgan Stanley, Wells Fargo and Credit Suisse, and can be increased up to a maximum US$750mn. It also includes a US$100mn letter of credit sub-facility and a US$40mn swingline loan sub-facility.

Proceeds will be used for working capital and general corporate purposes.

According to a document by the US Securities and Exchange Commission (SEC), availability of the facility will be based upon “periodic borrowing base certifications valuing certain of the borrowers’ inventory, accounts receivable and equipment, as reduced by certain reserves”.

The document also states that outstanding borrowings will accrue interest at floating rates plus an applicable margin of 1% for Libor rate loans, and 0% for base rate loans.

Founded in 2003, Tesla only posted its first profits in the first quarter of 2013. It raised US$2bn in convertible bonds in February 2014, and has announced its intention to spend US$1.5bn in capital expenditure this year. It also intends to expand into China.