General Motors Company announced today that it has started the process of a public offering.
“The offering will consist of 365 million shares of common stock to be sold by certain of its stockholders,” GM said in a statement. “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 Detroit automaker estimated a 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,” GM said. ” The conversion provisions depend on the applicable market value of the company’s common stock, and are subject to certain anti-dilution adjustments.”
Underwriters will 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.
Morgan Stanley and J.P. Morgan, BofA Merrill Lynch, Citi, Goldman, Sachs & Co., Barclays Capital, Credit Suisse, Deutsche Bank Securities and RBC Capital Markets will be the joint book-running managers for the offering.
A registration statement relating to these securities has been filed with the SEC but has not yet become effective.
– By: Omar Rana