New Issue: General Motors details $3 billion four-tranche issue of senior notes

By Devika Patel

Knoxville, Tenn., Aug. 3 – General Motors Co. offered further details about a $3 billion sale of senior notes (Baa3/BBB/BBB) that priced in four tranches on Wednesday, according to an FWP filed with the Securities and Exchange Commission.

The company priced $500 million of three-year floating-rate notes at par to yield Libor plus 80 basis points.

General Motors sold $750 million of 4.2% 10-year notes at 99.852 to yield 4.217% and a Treasuries plus 195 bps spread.

The $1 billion tranche of 5.15% long 20-year notes priced at 99.937 to yield 5.154% and a spread of 230 bps over Treasuries.

In the final tranche, the company priced $750 million of 5.4% long 30-year notes at 99.927 to yield 5.404% and a spread of Treasuries plus 255 bps.

Pricing came on the tight side of guidance.

The offering had a combined final book size of more than $8 billion.

Deutsche Bank Securities Inc., BofA Merrill Lynch, Morgan Stanley & Co. LLC, Goldman Sachs & Co. and J.P. Morgan Securities LLC were the bookrunners.

Proceeds will be used to repay debt under the company’s three-year revolving credit facility and for general corporate purposes.

The company incurred the debt under the three-year revolver to make payments to Peugeot, SA in connection with Peugeot’s assumption of some of the company’s pension liabilities at the July 31 closing of the company’s sale of the Opel and Vauxhall businesses and certain other assets in Europe to Peugeot.

General Motors is a Detroit-based automaker.

Issuer:	General Motors Co.
Amount:	$3 billion
Description:	Senior notes
Bookrunners:	Deutsche Bank Securities Inc., BofA Merrill Lynch, Morgan Stanley & Co. LLC, Goldman Sachs & Co. and J.P. Morgan Securities LLC
Lead managers:	Citigroup Global Markets Inc., SG Americas Securities LLC, Barclays, BBVA Securities Inc., BNP Paribas Securities Corp., Commerzbank Capital Markets Corp., Mizuho Securities USA Inc. and RBS Securities Inc.
Co-managers:	Credit Agricole Securities (USA) Inc., ICBC Standard Bank plc, Lloyds Securities Inc., RBC Capital Markets Corp., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, Banco Bradesco BBI SA, BB Securities Ltd., UniCredit Capital Markets LLC, U.S. Bancorp Investments Inc., Santander Investment Securities Inc., BNY Mellon Capital Markets LLC, PNC Capital Markets LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co. Inc. and Williams Capital Group LP
Trade date:	Aug. 2
Settlement date:	Aug. 7
Ratings:	Moody’s: Baa3
	S&P: BBB
	Fitch: BBB
Distribution:	SEC registered
Three-year floaters
Amount:	$500 million
Maturity:	Aug. 7, 2020
Coupon:	Libor plus 80 bps
Price:	Par
Yield:	Libor plus 80 bps
Call feature:	Non-callable
Price talk:	Libor plus 85 bps area, plus or minus 5 bps
10-year notes
Amount:	$750 million
Maturity:	Oct. 1, 2027
Coupon:	4.2%
Price:	99.852
Yield:	4.217%
Spread:	Treasuries plus 195 bps
Call feature:	Make-whole call at Treasuries plus 30 bps until July 1, 2027 and then a par call
Price talk:	Treasuries plus 200 bps area, plus or minus 5 bps
Notes due 2038
Amount:	$1 billion
Maturity:	April 1, 2038
Coupon:	5.15%
Price:	99.937
Yield:	5.154%
Spread:	Treasuries plus 230 bps
Call feature:	Make-whole call at Treasuries plus 35 bps until Oct. 1, 2037 and then a par call
Price talk:	Treasuries plus 235 bps area, plus or minus 5 bps
Notes due 2048
Amount:	$750 million
Maturity:	April 1, 2048
Coupon:	5.4%
Price:	99.927
Yield:	5.404%
Spread:	Treasuries plus 255 bps
Call feature:	Make-whole call at Treasuries plus 40 bps until Oct. 1, 2047 and then a par call
Price talk:	Treasuries plus 260 bps area, plus or minus 5 bps

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