Published on 12/5/2023 in the Prospect News Investment Grade Daily.
New Issue: General Motors Financial prices $3 billion of notes due 2029, 2034
By William Gullotti and Cristal Cody
Buffalo, N.Y., Dec. 5 – General Motors Financial Co. Inc. priced a $3 billion two-part offering of senior notes on Monday, according to an FWP filed with the Securities and Exchange Commission and details from a market source.
Dropping the expected floating-rate tranche, General Motors priced $1.5 billion of 5.8% notes due Jan. 7, 2029 at 99.918 to yield 5.817%, or a spread of 160 basis points over Treasuries. Price talk was in the 185 bps area.
The company also priced $1.5 billion of 6.1% notes due Jan. 7, 2034 at 99.842 to yield 6.12%, or a spread of 185 bps over Treasuries, versus talk in the 210 bps area.
Each tranche features a make-whole call, followed by a par call.
J.P. Morgan Securities LLC, Lloyds Securities Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc. and SG Americas Securities, LLC are the joint bookrunning managers.
Proceeds will be used for general corporate purposes.
General Motors Financial is the Fort Worth-based finance subsidiary of General Motors Co.
| Issuer: | General Motors Financial Co. Inc.
|
| Amount: | $3 billion
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| Issue: | Senior notes
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| Bookrunners: | J.P. Morgan Securities LLC, Lloyds Securities Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc. and SG Americas Securities, LLC
|
| Co-managers: | Banco Bradesco BBI SA, BNY Mellon Capital Markets, LLC, Cabrera Capital Markets LLC, C.L. King & Associates, Inc., Guzman & Co. and MUFG Securities Americas Inc.
|
| Trustee: | Computershare Trust Co., NA
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| Counsel to issuer: | Latham & Watkins LLP
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| Counsel to underwriters: | Davis Polk & Wardwell LLP
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| Pricing date: | Dec. 4
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| Settlement date: | Dec. 7
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| Distribution: | SEC registered
|
|
|
| 2029 notes
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| Amount: | $1.5 billion
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| Maturity: | Jan. 7, 2029
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| Coupon: | 5.8%
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| Price: | 99.918
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| Yield: | 5.817%
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| Spread: | Treasuries plus 160 bps
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| Call: | Make-whole call at Treasuries plus 25 bps prior to Dec. 7, 2028; par call after that
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| Price talk: | Treasuries plus 185 bps area
|
| Cusip: | 37045XEN2
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|
|
| 2034 notes
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| Amount: | $1.5 billion
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| Maturity: | Jan. 7, 2034
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| Coupon: | 6.1%
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| Price: | 99.842
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| Yield: | 6.12%
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| Spread: | Treasuries plus 185 bps
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| Call: | Make-whole call at Treasuries plus 30 bps prior to Oct. 7, 2033; par call after that
|
| Price talk: | Treasuries plus 210 bps area
|
| Cusip: | 37045XEP7
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