By Ronda Fears
Memphis, May 24 - General Motors Corp. priced an upsized $1.305 billion of two-year convertible senior debentures on Thursday to yield 1.5% with an initial conversion premium of 20%. The convertibles were offered at par.
The issue was increased from $1.1 billion.
The convertible priced at the aggressive end of revised price talk, which was tightened during the one-day marketing phase to a yield of 1.5% to 1.75% from 1.75% to 2.25%; the initial conversion premium talk was left at 20%.
There is an over-allotment option for a further $195 million, boosted from $165 million.
Citigroup, Deutsche Bank and Goldman Sachs are joint bookrunners of the registered offering.
The senior unsecured notes are non-callable. There are no puts.
The issue offers takeover and dividend protection.
In addition to paying the put on an older convertible put back to the company in March, GM said the offering was being made to "bolster liquidity at a time when the capital markets present an attractive opportunity to do so." The company said any remaining proceeds might go toward its overall turnaround plan.
The Detroit-based automaker also said it has received a commitment for a supplemental revolving credit facility of roughly $4.1 billion, which it expects to be secured by its equity stake in former finance arm General Motors Acceptance Corp., or GMAC, in which it still owns 49%.
| Issuer: | General Motors Corp.
|
| Issue: | Convertible senior debentures
|
| Bookrunners: | Citigroup, Deutsche Bank and Goldman Sachs
|
| Amount: | $1.305 billion, up from $1.1 billion
|
| Greenshoe: | $195 million, up from $165 million
|
| Maturity: | May 31, 2009
|
| Coupon: | 1.5%
|
| Price: | Par
|
| Yield: | 1.5%
|
| Conversion premium: | 20%
|
| Conversion price: | $36.564
|
| Conversion ratio: | 27.3493
|
| Call: | Non-callable
|
| Puts: | No
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Pricing date: | May 24
|
| Settlement date: | May 31
|
| Distribution: | Registered
|
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