* GM $1 billion Series A convertibles at 4.5% yield, up 32.5%
* GM $2.3 billion Series B convertibles at 5.25% yield, up 22.5%
By Ronda Fears
Nashville, Tenn., March 1 - General Motors Corp. sold $3.3 billion of convertible notes in two tranches in an offering increased from the original $2.5 billion size.
Merrill Lynch & Co. and Morgan Stanley were joint lead managers of the registered deal for the Detroit, Mich. automaker.
In the series A portion, General Motors sold $1 billion of 30-year convertible notes at par of 25 to yield 4.5% with a 32.5% initial conversion premium. The deal sold at the aggressive end of price talk that put the yield at 4.5% to 5.0% and premium between 27.5% and 32.5%.
In the series B portion, General Motors sold $2.3 billion of 30-year convertible notes at par of 25 to yield 5.25% with a 22.5% initial conversion premium. These securities also sold at the aggressive end of price talk that put the yield at 5.25% to 5.75% and premium between 17.5% and 22.5%.
Terms of the new series A deal are:
Issuer: General Motors Corp.
Amount: $1 billion
Lead Managers: Merrill Lynch and Morgan Stanley
Maturity Date: March 11, 2032
Coupon: 4.5%
Issue Price: par, $25
Yield to maturity: 4.5%
Conversion Premium: 32.5%
Conversion Price: $70.199
Conversion Ratio: 0.356
Call: non-callable for five years, then at par
Put: in years five, 10, 15, 20 and 25 at par
Contingent Conversion: 120% hurdle
Rating(s): Moody's: A3
| S&P: BBB+
|
| Settlement Date: | March 6
|
|
|
| Terms of the new series B deal are:
|
|
|
| Issuer: | General Motors Corp.
|
| Amount: | $2.3 billion
|
| Lead Managers: | | Merrill Lynch and Morgan Stanley
|
| Maturity Date: | March 11, 2032
|
| | Coupon: | 5.25%
|
| Issue Price: | par, $25
|
| Yield to maturity: | 5.25%
|
| Conversion Premium: | 22.5%
|
| Conversion Price: | $64.901
|
| Conversion Ratio: | 0.385
|
| Call: | non-callable for seven years, then at par
|
| Put: | in years seven, 12, 17, 22 and 27 at par
|
| Contingent Conversion: | 120% hurdle
|
| Rating(s): | Moody's: A3
|
| S&P: BBB+
|
| Settlement Date: | March 6
|
|
|
|
|
© 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.
