GM plans offering of mandatory convertible preferreds as part of IPO

By Rebecca Melvin

New York, Aug. 18 - General Motors Co. announced that it plans to issue series B mandatory convertible junior preferred stock as part of its proposed initial public offering of common stock to be sold by certain of its stockholders, according to a company news release Wednesday.

GM has filed an S-1 registration statement with the Securities and Exchange Commission.

Details of the mandatory offering were not available, and probably wouldn't be available for several months, a syndicate source said.

"It's not going to happen for a long time. It's got to go through the SEC, and there's political process given who owns GM right now," the source said.

GM said the offering will be determined by market conditions and other factors at the time of the offering, and neither the number of shares to be offered nor the price range for the offering had been determined.

Morgan Stanley and JPMorgan (representatives of the underwriters), Bank of America Merrill Lynch, Citigroup, Goldman Sachs & Co., Barclays Capital, Credit Suisse, Deutsche Bank Securities, RBC Capital Markets and UBS Investment Bank will be the joint bookrunners for the offering.

GM is a Detroit-based automaker.

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