While we were busy covering the numerous reveals, sights, and sounds of SEMA 2014, General Motors announced the pricing of three series of senior unsecured notes for a total of $2.5 billion. These notes include:
- $500 million of 4.00 percent notes due in 2025
- $750 million of 5.00 percent notes due in 2035
- $1.25 billion of 5.20 percent notes due in 2045
The offering of the notes is expected to settle on November 12th, 2014.
In a news release, The General stated that it intends to use the net proceeds from the sale of the notes toward the expected redemption of the Series A Preferred Shares on or after December 31st, 2014. To the extent that the net proceeds are not used for the expected redemption, for general corporate uses.
“Favorable market conditions made now the appropriate time to add liquidity to further strengthen our fortress balance sheet and improve our financial flexibility,” said Chuck Stevens, GM executive vice president and chief financial officer.