General Motors Prices $4.5 Bln Senior Notes Offering - Quick Facts

(RTTNews) - General Motors Co. (GM) Tuesday priced offering of three series of senior unsecured notes for a total of $4.5 billion. The offering include $1.5 billion of 3.5 percent notes due in 2018, $1.5 billion of 4.875 percent notes due in 2023 and $1.5 billion of 6.25 percent notes due in 2043.

Net proceeds from the offering is estimated to be around $3.2 billion, and will be used to repurchase 120 million shares of Series A Preferred Stock from the UAW Retiree Medical Benefits Trust.

The company also intends to use approximately $1.2 billion of the net proceeds to prepay in full its 7 percent notes held by the Canadian Auto Workers' Union Health Care Trust, due in periodic installments through 2018, including accrued interest.

The shares have a liquidation preference of $25 per share and will accrue cumulative dividends at a rate equal to 9 percent annually.

The transactions are expected to be accretive to 2014 earnings by approximately $0.11 per share. The offering is expected to settle on September 27.