General Motors keeps paying down revolver, paid $9.1 billion thus far

By Devika Patel

Knoxville, Tenn., Nov. 5 – General Motors Co. plans to repay more of its revolver debt this quarter, having paid down $5.2 billion last quarter and $3.9 billion in October.

“In Q3, we repaid $5.2 billion of a corporate revolver draw and paid an additional $3.9 billion in October,” acting chief financial officer John Stapleton said on the company’s third quarter ended Sept. 30 earnings conference call on Wednesday.

“We expect to pay the balance by the end of the year,” he said.

Cash and cash equivalents were $26,939,000,000 as of Sept. 30, 2020, compared to $19,069,000,000 as of Dec. 31, 2019.

On Sept. 9, General Motors Financial Co., Inc. priced a $500 million offering of $1,000-par series C fixed-rate reset cumulative perpetual preferred stock (BB+) with a dividend of 5.7% at par.

There was no greenshoe.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC were the bookrunners.

Dividends are payable on March 30 and Sept. 30, starting on March 30, 2021.

On Sept. 30, 2030 and every five years thereafter, the dividend resets to the rate of Treasuries plus 499.7 basis points.

The preferreds are redeemable on Sept. 30, 2030 and any dividend payment date.

Proceeds were earmarked for general corporate purposes.

General Motors is a Detroit-based automaker.

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