GM: 4 billion dollar bond issue

(CercleFinance.com) - General Motors announced on Friday that it is issuing a 4 billion dollar bond in three tranches, according to documents filed with the Securities and Exchange Commission (SEC).


The senior unsecured bonds, with respective maturities of 2023, 2025 and 2027, will be issued at rates ranging from 5.4% to 6.8%, the car maker said.

In the midst of the Covid-19 pandemic, the proceeds from these issues are intended to be used "for general corporate purposes" it added.

GM - which unveiled strong Q1 results this week - also said it intends to sign a one-year revolving credit facility for an additional 2 billion dollars.

At the end of March, the US giant said that it wanted to make use of 16 billion dollars in revolving credit facilities in order to preserve its financial flexibility, in light of the uncertainties generated by the coronavirus pandemic.

GM has estimated its cash position at about 15-16 billion dollars.


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