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GM Financial Offers $500 Million In Notes

Auto financing company General Motors Financial Co. said Thursday that it will offer $500 million in seven-year senior notes with a 6.75 percent interest rate.

FORT WORTH, Texas (AP) -- Auto financing company General Motors Financial Co. said Thursday that it will offer $500 million in seven-year senior notes with a 6.75 percent interest rate.

The offering is expected to close June 1.

GM Financial plans to use about $71 million of the net proceeds from the offering to redeem its outstanding 8.5-percent senior notes due in 2015. The remaining proceeds will be used for general purposes.

GM Financial, based in Fort Worth, Texas, and formerly known as AmeriCredit Corp., handles loans for potential customers with less-than-stellar credit. GM bought AmeriCredit on Oct. 1 in a $3.5 billion deal.

GM shares fell 59 cents to close at $30.68.
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