Published on 9/24/2013 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: General Motors prices $4.5 billion senior notes in three tranches
By Paul A. Harris
Portland, Ore., Sept. 24 - General Motors Co. priced $4.5 billion of senior notes (Ba1/BB+/BB+) in three $1.5 billion non-callable and par-pricing tranches on Tuesday, according to a syndicate source.
The deal included a $1.5 billion tranche of five-year notes that priced at par to yield 3½%. The yield printed on top of yield talk. Initial guidance was in the 4% area.
General Motors also priced a $1.5 billion tranche of 10-year notes at par to yield 4 7/8%, also on top of yield talk. Initial guidance on the 10-year notes came in the 5¼% area.
The long tranche was a $1.5 billion issue of 30-year notes, which priced at par to yield 6¼%, again on top of yield talk. Initial guidance was 6¾% to 7%.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., RBS Securities Inc. and UBS Securities LLC were the joint bookrunners for the deal, which was priced on the investment-grade desk.
The Detroit, Mich.-based car-maker plans to use about $3.2 billion of the proceeds to repurchase 120 million shares of its series A preferred stock. Approximately $1.2 billion will be used to redeem all of the outstanding Canadian Health Care Trust notes issued by subsidiary General Motors of Canada Ltd. The remaining proceeds will be used for general corporate purposes.
| Issuer: | General Motors Co.
|
| Amount: | $4.5 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., RBS Securities Inc., UBS Securities LLC
|
| Joint lead arrangers: | Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., RBC Capital Markets LLC
|
| Co-managers: | Banco Bradesco BBI SA, BB Securities Ltd., BNY Mellon Capital Markets LLC, Lloyds Securities Inc., Sandler O'Neill & Partners LP, TD Securities (USA) LLC, Cabrera Capital Markets LLC, Lebenthal & Co. LLC, Samuel A. Ramirez & Co. Inc., Williams Capital Group LP
|
| Call protection: | All tranches non-callable
|
| Make-whole: | Treasuries plus 50 bps for all tranches
|
| Trade date: | Sept. 24
|
| Settlement date: | Sept. 27
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB+
|
| Fitch: BB+
|
| Marketing: | Brief roadshow
|
|
|
| Five-year notes
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| Amount: | $1.5 billion
|
| Maturity: | Oct. 2, 2018
|
| Coupon: | 3½%
|
| Price: | Par
|
| Yield: | 3½%
|
| Spread: | 207.6 bps
|
| Yield talk: | 3½%, revised from 4% area
|
|
|
| 10-year notes
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| Amount: | $1.5 billion
|
| Maturity: | Oct. 2, 2023
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Spread: | 221.3 bps
|
| Yield talk: | 4 7/8%, revised from 5¼% area
|
|
|
| 30-year notes
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| Amount: | $1.5 billion
|
| Maturity: | Oct. 2, 2043
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| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| Spread: | 253.9 bps
|
| Yield talk: | 6¼%, revised from 6¾% to 7%
|
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