GM issues 16 million shares in exchange for $176.42 million 1.5% convertibles

By Susanna Moon

Chicago, Sept. 29 - General Motors Corp. issued 16 million common shares in exchange for $176,417,800 of its 1.5% series D convertible senior debentures due 2009, according to an 8-K filing with the Securities and Exchange Commission.

GM noted that it did not receive any cash proceeds as a result of the exchange, adding that the debentures have been retired and canceled. It said it entered into the agreement to reduce its debt and interest costs.

The agreement provided that the amount of stock GM exchanged for the debentures was based on the daily volume-weighted average price on the New York Stock Exchange during a three-day pricing period.

The Detroit-based automotive company entered into the agreement with an existing holder of the company's securities.

GM said it will from time to time consider entering into additional exchanges on an opportunistic basis.

The company said on Sept. 19 that it issued 28.3 million common shares in exchange for $321.98 million of its 1.5% series D convertible senior debentures due 2009.

© 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.