New Issue: General Motors upsized $4 billion convertibles at 6.25% yield, up 32.5%

By Ronda Fears

Nashville, June 26 - General Motors Corp. sold an upsized $4 billion of 30-year convertibles at par of 25 to yield 6.25% with a 32.5% initial conversion premium, via joint lead managers Merrill Lynch, Morgan Stanley and Citigroup. It priced smack in the middle of guidance.

The giant automaker and its General Motors Acceptance Corp. also sold about $13.5 billion of euro and sterling denominated bonds. Total proceeds will go toward filling the underfunded position of GM's pension plan, which was estimated at $19.3 billion at yearend.

Terms of the deal are:

Issuer: General Motors Corp.

Issue:	convertible notes
Lead managers:		Merrill Lynch, Morgan Stanley and Citigroup
Amount	$4 billion, upped from $3.5 billion
Greenshoe:	$600 million
Maturity:	July 15, 2033
Dividend:	6.25%
Price:	par, $25
Yield:	6.25%
Conversion premium:	32.5%
Conversion price:	$47.62
Conversion ratio:	0.525
Call:	noncallable for 7 years
Put:	in years 15, 20 and 25
Price Talk:	6.0-6.5%, up 30-35%
Pricing Date:	June 26, after the close
Settlement:	July 2

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.