By Aleesia Forni
New York, Feb. 18 – General Motors Co. sold $2 billion of senior notes (Ba1/BBB-/BBB-) on Thursday in two tranches due April 1, 2036 and April 1, 2046, according to an informed source.
The new issue included $1.25 billion of 6.6% 20-year bonds sold at 99.92 to yield 6.606%, or Treasuries plus 400 basis points.
The notes were guided in the Treasuries plus 405 bps area and initially talked in the 425 bps area over Treasuries.
A $750 million tranche of 6.75% 30-year notes sold at 99.906 to yield 6.756% with a spread of Treasuries plus 415 bps.
Pricing came at the tightest side of guidance set in the 420 bps area over Treasuries. The notes were previously talked in the area of Treasuries plus 437.5 bps.
Goldman Sachs & Co., BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC are the joint bookrunners.
The Detroit-based automaker plans to use the proceeds to make a discretionary contribution to its U.S. hourly pension plan and for general corporate purposes.
| Issuer: | General Motors Co.
|
| Issue: | Senior notes
|
| Amount: | $2 billion
|
| Bookrunners: | Goldman Sachs & Co., BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC
|
| Trade date: | Feb. 18
|
| Settlement date: | Feb. 23
|
| Ratings: | Moody’s: Ba1
|
| Standard & Poor’s: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| 20-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | April 1, 2036
|
| Coupon: | 6.6%
|
| Price: | 99.92
|
| Yield: | 6.606%
|
| Spread: | Treasuries plus 400 bps
|
| Price guidance: | Treasuries plus 405 bps area, tightened from Treasuries plus 425 bps area
|
|
|
| 30-year notes
|
| Amount: | $750 million
|
| Maturity: | April 1, 2046
|
| Coupon: | 6.75%
|
| Price: | 99.906
|
| Yield: | 6.756%
|
| Spread: | Treasuries plus 415 bps
|
| Price guidance: | Treasuries plus 420 bps area, tightened from Treasuries plus 437.5 bps area
|
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