Published on 9/5/2018 in the Prospect News Investment Grade Daily.
New Issue: General Motors prices $2.1 billion three-part offering of senior notes
By Cristal Cody
Tupelo, Miss., Sept. 5 – General Motors Co. priced $2.1 billion of senior notes (Baa3/BBB/BBB) in three tranches on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $450 million of three-year floating-rate notes at par to yield Libor plus 90 basis points.
A $750 million tranche of 5% 10-year fixed-rate notes priced at 99.965 to yield 5.004%, or a spread of 210 bps over Treasuries.
General Motors also sold $900 million of 5.95% notes due April 1, 2049 at 99.966 to yield 5.952%. The bonds priced with a spread of Treasuries plus 287.5 bps.
The notes printed better than initial price guidance.
Barclays, Deutsche Bank Securities Inc. and SG Americas Securities LLC were the bookrunners.
Lead managers were Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, BNP Paribas Securities Corp., Commerz Markets LLC, Goldman Sachs & Co. LLC, ICBC Standard Bank plc, Lloyds Securities Inc. and Morgan Stanley & Co. LLC.
Proceeds will be used to repay the company’s $1.5 billion aggregate of 3.5% senior notes due Oct. 2, 2018, to pre-fund certain mandatory contributions for its U.K. and Canada pension plans due in 2019 through 2021 and for other general corporate purposes.
General Motors is a Detroit-based automaker.
| Issuer: | General Motors Co.
|
| Amount: | $2.1 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, Deutsche Bank Securities Inc. and SG Americas Securities LLC
|
| Lead managers: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, BNP Paribas Securities Corp., Commerz Markets LLC, Goldman Sachs & Co. LLC, ICBC Standard Bank plc, Lloyds Securities Inc. and Morgan Stanley & Co. LLC
|
| Co-managers: | BBVA Securities Inc., Mizuho Securities USA LLC, NatWest Markets Securities Inc., UniCredit Capital Markets LLC, RBC Capital Markets, LLC, Santander Investment Securities Inc., SMBC Nikko Securities America, Inc., Academy Securities, Inc., Guzman & Co. and Siebert Cisneros Shank & Co., LLC
|
| Trade date: | Sept. 5
|
| Settlement date: | Sept. 10
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $450 million
|
| Maturity: | Sept. 10, 2021
|
| Coupon: | Libor plus 90 bps
|
| Price: | Par
|
| Yield: | Libor plus 90 bps
|
| Call feature: | None
|
| Price guidance: | Libor plus 95 bps area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Oct. 1, 2028
|
| Coupon: | 5%
|
| Price: | 99.965
|
| Yield: | 5.004%
|
| Spread: | Treasuries plus 210 bps
|
| Call feature: | Make-whole call at Treasuries plus 35 bps before July 1, 2028; thereafter at par
|
| Price guidance: | Treasuries plus 215 bps area
|
|
|
| Notes due 2049
|
| Amount: | $900 million
|
| Maturity: | April 1, 2049
|
| Coupon: | 5.95%
|
| Price: | 99.966
|
| Yield: | 5.952%
|
| Spread: | Treasuries plus 287.5 bps
|
| Call feature: | Make-whole call at Treasuries plus 45 bps before Oct. 1, 2048; thereafter at par
|
| Price guidance: | Treasuries plus 295 bps area
|
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