General Motors launches $1.1 billion two-year convertibles talked to yield 1.75%-2.25%, up 20%

By Ronda Fears

Memphis, May 23 - General Motors Corp. launched $1.1 billion of two-year convertible senior unsecured notes on Wednesday talked to yield 1.75% to 2.25% with an initial conversion premium of 20%. The issue is slated to price after the market close Thursday.

There is an over-allotment option for a further $165 million.

Citigroup, Deutsche Bank and Goldman Sachs are joint bookrunners of the registered offering.

The convertibles are non-callable. There are no puts.

The issue offers takeover and dividend protection.

The Detroit-based automaker said the purpose of the offering is to replace $1.1 billion in convertible securities put to the company in March and to "bolster liquidity at a time when the capital markets present an attractive opportunity to do so."

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