General Motors Company Prices Public Offering of Common and Preferred Stock
DETROIT, Mich. General Motors Company announced today the pricing of a public offering of common and mandatory convertible junior preferred stock. The total offering size will be $20.1 billion or $23.1 billion if the underwriters over-allotment options are fully exercised.
As we prepare to enter the equity markets, all of us at GM are excited about this historic milestone. We are especially appreciative of those who stood by us through the toughest times, and we are dedicated to creating value for all of our stakeholders, said GM Vice Chairman and Chief Financial Officer Chris Liddell.
The issue included 478 million shares of common stock, for a total of $15.77 billion, and 87 million shares of mandatory convertible junior preferred stock, for a total of $4.35 billion. The underwriters have a 30-day option to purchase up to 71.7 million additional shares of common stock from the selling stockholders, for a total of $2.37 billion, and an additional 13 million shares of mandatory convertible junior preferred stock from the company on the same terms and conditions, for a total of $650 million, to cover over-allotments, if any.
The common stock has been priced at $33.00 per share. On the mandatory conversion date, December 1, 2013, each share of mandatory convertible junior preferred stock, unless previously converted, will automatically convert into shares of common stock. The Series B mandatory convertible junior preferred stock will have a 4.75% dividend rate and a liquidation preference of $50 per share.
GMs common stock will begin trading on November 18, 2010, on the New York Stock Exchange under the ticker symbol GM and on the Toronto Stock Exchange under the symbol GMM. The mandatory convertible junior preferred stock will begin trading on November 18, 2010, subject to official notice of issuance, on the New York Stock Exchange under the symbol GM Pr B. The closing of both offerings is scheduled to take place on November 23, 2010. The closing of the mandatory convertible junior preferred stock offering is conditional upon the closing of the offering for GMs common stock.
With a new business model, centered around designing, building and selling the world's best vehicles, we're ready to compete and are confident about the company's future, said Liddell.
A registration statement relating to these securities was declared effective by the Securities and Exchange Commission (SEC) on November 17, 2010. Any offer or sale of these securities will be made only by means of a written prospectus forming the effective registration statement. Copies of the prospectus relating to the offering may be obtained for free, by visiting the SEC website at https://www.sec.gov/ or by contacting:
- Morgan Stanley & Co. Incorporated, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014, telephone 1-866-718-1649, or by sending an email to [email protected]
- J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone 1-866-803-9204
About General Motors
General Motors (NYSE: GM, TSX: GMM), one of the worlds largest
automakers, traces its roots back to 1908. With its global
headquarters in Detroit, GM employs 209,000 people in every major
region of the world and does business in more than 120
countries. GM and its strategic partners produce cars and
trucks in 31 countries, and sell and service these vehicles through
the following brands: Buick, Cadillac, Chevrolet, GMC, Daewoo,
Holden, Isuzu, Jiefang, Opel, Vauxhall, and Wuling. GMs largest
national market is China, followed by the United States, Brazil,
the United Kingdom, Germany, Canada, and Russia. GMs OnStar
subsidiary is the industry leader in vehicle safety, security and
information services. General Motors acquired operations from
General Motors Corporation on July 10, 2009, and references to
prior periods in this and other press materials refer to operations
of the old General Motors Corporation. More information on
the new General Motors can be found at www.gm.com.
Forward-Looking Statements
In this press release and in related comments by our
management, our use of the words expect, anticipate, possible,
potential, target, believe, commit, intend, continue, may, would,
could, should, project, projected, positioned or similar
expressions is intended to identify forward-looking statements that
represent our current judgment about possible future events. We
believe these judgments are reasonable, but these statements are
not guarantees of any events or financial results, and our actual
results may differ materially due to a variety of important
factors. Among other items, such factors might include: our
ability to realize production efficiencies and to achieve
reductions in costs as a result of our restructuring initiatives
and labor modifications; our ability to maintain quality control
over our vehicles and avoid material vehicle recalls; our ability
to maintain adequate liquidity and financing sources and an
appropriate level of debt, including as required to fund our
planning significant investment in new technology; our ability to
realize successful vehicle applications of new technology; and our
ability to continue to attract new customers, particularly for our
new products. GM's most recent annual report on Form 10-K and
quarterly reports on Form 10-Q provide information about these and
other factors, which we may revise or supplement in future reports
to the SEC.
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