By Rebecca Melvin
New York, Nov. 17 - General Motors Co. priced an upsized $4.35 billion of three-year mandatory convertible preferred stock with a liquidation price of $50 per share for a 4.75% dividend and a 20% initial conversion premium, according to a syndicate source.
The registered offering was upsized by 7 million shares, or $350 million, to 87 million shares, from $4 billion, or 80 million shares, and that amount was revised upward on Monday from an initially talked 60 million shares.
Pricing came at the tight end of talk for the dividend, which was 4.75% to 5.25%, and at the talked price point for the initial conversion premium.
There is a greenshoe for an additional $650 million, or 13 million of mandatory convertibles.
GM also priced $15.77 billion of common stock at $33.00 per share in one of the largest initial public offerings.
Morgan Stanley & Co. Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co., Barclays Capital Inc., Credit Suisse Securities, Deutsche Bank Securities Inc. and RBC Capital Markets Corp. were joint bookrunners for the mandatories.
The three-year non-callable paper has full dividend and takeover protection.
General Motors is a Detroit-based automaker.
| Issuer: | General Motors Co.
|
| Issue: | Convertible mandatory preferreds
|
| Amount: | $4.35 billion, upsized from $4 billion
|
| Greenshoe: | $650 million
|
| Concurrent offering: | $15.77 billion of common stock at $33.00 per share
|
| Maturity: | Dec. 1, 2013
|
| Bookrunners: | Morgan Stanley & Co. Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co., Barclays Capital Inc., Credit Suisse Securities, Deutsche Bank Securities Inc., RBC Capital Markets Corp.
|
| Dividend: | 4.75%
|
| Price: | Par, $50
|
| Yield: | 4.75%
|
| Conversion premium: | 20%
|
| Conversion price: | $39.60
|
| Minimum conversion rate: | 1.2626
|
| Maximum conversion rate: | 1.5152
|
| Takeover protection: | Yes
|
| Pricing date: | Nov. 17
|
| Settlement date: | Nov. 23
|
| Stock reference price: | $33.00 as per IPO
|
| Stock symbol: | NYSE: GM
|
| Distribution: | Registered
|
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