GM commences $13 billion public offering

• Source: Global Times
• [13:23 November 04 2010]
• Comments

General Motors Company Wednesday announced it has commenced a public offering.

The offering will consist of 365 million shares of common stock to be sold by certain of its stockholders. The company will also issue 60 million shares of its Series B mandatory convertible junior preferred stock with a liquidation amount of $50 per share.

The estimated price range for the offering of common stock is $26.00 to $29.00 per share

Unless converted earlier at the option of the holder, each share of the Series B preferred stock will automatically convert on the mandatory conversion date, which is expected to be three years from the original issue date.  The conversion provisions depend on the applicable market value of the company's common stock, and are subject to certain anti-dilution adjustments.

The underwriters have the option to purchase from the selling stockholders up to an additional 54.75 million shares of common stock and from the company an additional 9 million shares of Series B preferred stock, on the same terms and conditions, to cover over-allotments, if any.

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