General Motors greenshoe exercised, lifts convertibles to $5 billion

By Melissa Kory

Cleveland, Nov. 29 - General Motors Co. said its underwriters exercised their over-allotment options for

$650 million, or 13 million shares, of mandatory convertible junior preferred stock due Dec. 1, 2013, lifting its previously announced public offering to $5 billion.

The upsized $4.35 billion of three-year mandatory convertibles was priced on Nov. 17 with a liquidation price of $50 per share for a 4.75% dividend and 20% initial conversion premium.

The closing for the additional shares is expected to take place on Dec. 2.

Morgan Stanley & Co. Inc. and J.P. Morgan Securities LLC were the underwriters.

The convertibles were offered in connection with $15.77 billion of common stock, priced on Nov. 17 at $33 per share. Underwriters exercised an over-allotment option for an additional $2.37 billion, or 71.7 million shares, of common stock.

General Motors is a Detroit-based automaker.

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