Published on 6/17/2020 in the Prospect News Investment Grade Daily.
New Issue: General Motors Financial prices $2 billion of notes due 2025, 2030
By Cristal Cody
Tupelo, Miss., June 17 – General Motors Financial Co., Inc. priced $2 billion of senior notes (Baa3/BBB/BBB-) in two tranches on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $1.25 billion offering of 2.75% five-year notes priced at a spread of 245 basis points over Treasuries, or 99.843 to yield 2.784%.
Initial price talk was in the 280 bps spread area.
The company sold $750 million of 3.6% 10-year notes at 99.709 to yield 3.635%. The notes priced at a Treasuries plus 290 bps spread, compared to talk in the 325 bps area.
Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., J.P. Morgan Securities LLC, Lloyds Securities Inc., SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
The Fort Worth-based financing company is a subsidiary of automaker General Motors Co.
| Issuer: | General Motors Financial Co., Inc.
|
| Amount: | $2 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., J.P. Morgan Securities LLC, Lloyds Securities Inc., SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | ING Financial Markets LLC, Loop Capital Markets LLC, Siebert Williams Shank & Co., LLC, Great Pacific Securities and Mischler Financial Group, Inc.
|
| Trade date: | June 17
|
| Settlement date: | June 22
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | June 20, 2025
|
| Coupon: | 2.75%
|
| Price: | 99.843
|
| Yield: | 2.784%
|
| Spread: | Treasuries plus 245 bps
|
| Call features: | Make-whole call before May 20, 2025 at Treasuries plus 40 bps; thereafter at par
|
| Price guidance: | Treasuries plus 280 bps area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | June 21, 2030
|
| Coupon: | 3.6%
|
| Price: | 99.709
|
| Yield: | 3.635%
|
| Spread: | Treasuries plus 290 bps
|
| Call features: | Make-whole call before March 21, 2030 at Treasuries plus 45 bps; thereafter at par
|
| Price guidance: | Treasuries plus 325 bps area
|
|
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