General Motors Company Prices Public Offering of Common and Preferred Stock
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"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.
GM's 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 GM's 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 http://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 prospectus@morganstanley.com