Former AmeriCredit gives change-of-control put option for convertibles

By Angela McDaniels

Tacoma, Wash., Oct. 21 - General Motors Financial Co., Inc., formerly known as AmeriCredit Corp., granted a change-of-control put option to the holders of its 0.75% convertible senior notes due 2011 and 2.125% convertible senior notes due 2013, according to a company news release.

The option was granted following the merger of General Motors Financial, General Motors Holdings LLC and Goalie Texas Holdco Inc. on Oct. 1. The company is now a subsidiary of General Motors Holdings and an indirect subsidiary of General Motors Co.

The put option expires at 5 p.m. ET on Dec. 9. Any convertibles put back to the company will be repurchased at par plus accrued interest on Dec. 10.

As previously reported, the notes are temporarily convertible at an increased rate due to the merger.

The notes are convertible only for cash. For each $1,000 principal amount, holders who convert will receive $1,000.69 per 0.75% note and $1,000.81 per 2.125% note.

The cash amounts are equal to $24.50, the amount paid for each share of AmeriCredit in the merger, multiplied by the adjusted conversion ratio, which is 40.8444 for the 0.75% notes and 40.8495 for the 2.125% notes.

The adjusted conversion ratios are equal to the conversion ratios that would otherwise apply to the notes plus a make-whole conversion rate adjustment.

Noteholders must surrender their notes for conversion by Dec. 9 in order to receive the increased conversion rate.

Forth Worth-based General Motors Financial provides auto financing.

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