General Motors (NYSE:GM) Financial Company, Inc. (GM Financial) has completed a public offering of senior notes totaling $1.75 billion, the company reported in a recent SEC filing. The offering, which closed today, comprised $1 billion of 4.900% senior notes due in 2029 and $750 million of 5.45% senior notes due in 2034.
The offering was conducted under an underwriting agreement with a consortium of banks including BNP Paribas (OTC:BNPQY) Securities Corp., Citigroup Global Markets Inc., Deutsche Bank (ETR:DBKGn) Securities Inc., J.P. Morgan Securities LLC, Lloyds (LON:LLOY) Securities Inc., and RBC (TSX:RY) Capital Markets, LLC. GM Financial has agreed to indemnify the underwriters against certain liabilities or to contribute to payments they may be required to make in connection with these liabilities.
The proceeds from the sale of the notes, which are estimated at approximately $1.74 billion after underwriting discounts and offering expenses, are intended for general corporate purposes. This capital injection will be added to GM Financial's general funds.
The notes were issued under an indenture dated October 13, 2015, and a fifty-sixth supplemental indenture dated today, between GM Financial and Computershare Trust Company, N.A., as trustee. The notes are unsecured senior obligations and will rank equally with GM Financial's other unsecured senior indebtedness, and effectively junior to any secured indebtedness to the extent of the collateral securing such debt.
Interest on the 2029 notes will be paid semi-annually at a rate of 4.900% per annum, with the first payment due on April 6, 2025, and the notes maturing on October 6, 2029.
The 2034 notes will bear interest at a rate of 5.450% per annum, payable semi-annually with the first payment due on March 6, 2025, and the notes maturing on September 6, 2034. The company may redeem the notes before their scheduled maturity dates under certain conditions outlined in the indenture.
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