Hughes Hubbard helped Daimler AG, the maker of Mercedes-Benz cars, 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-car maker, protected itself against significant fluctuations 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 first highway-capable electric vehicle in North America and Europe, makes electric vehicles with exceptional design, performance and efficiency. 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.