GM/AmeriCredit increases conversion rate for 0.75% and 2.125% notes

By Jennifer Chiou

New York, Oct. 1 - General Motors Financial Co., Inc., formerly AmeriCredit Corp., announced changes to the conversion rates for its 0.75% convertible senior notes due 2011 and its 2.125% convertible senior notes due 2013 due to a make-whole fundamental change.

As already reported, the fundamental change resulted from the merger among General Motors Holdings LLC, a wholly owned subsidiary of General Motors Co., Goalie Texas Holdco Inc. and AmeriCredit. Effective Friday, AmeriCredit is the surviving corporation of the merger with Goalie and is now a wholly owned subsidiary of GM Holdings and a wholly owned indirect subsidiary of GM.

Under the note indentures, the notes are convertible only for cash. The adjusted conversion rate for the 0.75% notes is 40.8444 GM Financial shares per $1,000 principal amount of notes, which would result in a cash payment of $1,000.69 per $1,000 of notes surrendered for conversion.

The adjusted conversion rate for the 2.125% notes is 40.8495 shares of GM Financial common stock per $1,000 principal amount of notes, resulting in a cash payment of $1,000.81 per $1,000 of notes surrendered for conversion.

The increase was calculated by adding the conversion rate that would otherwise apply to the notes plus an amount equal to the make-whole conversion rate adjustment in each of the indentures.

AmeriCredit Corp. was a Fort Worth-based independent automobile finance company.

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