Published on 5/4/2016 in the Prospect News Investment Grade Daily.
New Issue: General Motors Financial prices $3 billion senior notes in three tranches
By Cristal Cody
Eureka Springs, Ark., May 4 – General Motors Financial Co. Inc. priced $3 billion in a three-part offering of senior notes (BBB-/BBB-) on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $400 million of three-year floating-rate notes at par to yield Libor plus 145 basis points.
General Motors Financial priced $1.4 billion of 2.4% three-year fixed-rate notes at 99.896 to yield 2.436%, or Treasuries plus 155 bps. The notes priced on the tight side of guidance of Treasuries plus 160 bps, plus or minus 5 bps.
In the final tranche, the company placed $1.2 billion of 3.7% seven-year notes at 99.743 to yield 3.742%. The notes priced with a spread of 220 bps over Treasuries, compared to guidance of Treasuries plus 225 bps, plus or minus 5 bps.
The notes are guaranteed by operating subsidiary AmeriCredit Financial Services, Inc.
Banco Bradesco BBI SA, Deutsche Bank Securities Inc., Goldman Sachs & Co., BofA Merrill Lynch, RBC Capital Markets LLC and SMBC Nikko Securities America, Inc. were the bookrunners.
Proceeds will be added to the company’s general funds and will be available for general corporate purposes.
General Motors Financial is the Fort Worth-based finance subsidiary of General Motors Co.
| Issuer: | General Motors Financial Co. Inc.
|
| Guarantor: | AmeriCredit Financial Services, Inc.
|
| Amount: | $3 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Banco Bradesco BBI SA, Deutsche Bank Securities Inc., Goldman Sachs & Co., BofA Merrill Lynch, RBC Capital Markets LLC, SMBC Nikko Securities America, Inc.
|
| Co-managers: | BBVA Securities Inc., Scotia Capital (USA) Inc., UniCredit Capital Markets LLC, Samuel A. Ramirez & Co., Inc., Siebert Brandford Shank & Co., LLC
|
| Pricing date: | May 4
|
| Settlement date: | May 9
|
| Ratings: | S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $400 million
|
| Maturity: | May 9, 2019
|
| Coupon: | Libor plus 145 bps
|
| Price: | Par
|
| Yield: | Libor plus 145 bps
|
| Call feature: | None
|
|
|
| Three-year fixed-rate notes
|
| Amount: | $1.4 billion
|
| Maturity: | May 9, 2019
|
| Coupon: | 2.4%
|
| Price: | 99.896
|
| Yield: | 2.436%
|
| Spread: | Treasuries plus 155 bps
|
| Make-whole call: Treasuries plus 25 bps
|
| Price guidance: | Treasuries plus 160 bps, plus or minus 5 bps
|
|
|
| Seven-year notes
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| Amount: | $1.2 billion
|
| Maturity: | May 9, 2023
|
| Coupon: | 3.7%
|
| Price: | 99.743
|
| Yield: | 3.742%
|
| Spread: | Treasuries plus 220 bps
|
| Call features: | Make-whole call at Treasuries plus 35 bps before March 9, 2023; par call on or after March 9, 2023
|
| Price guidance: | Treasuries plus 225 bps, plus or minus 5 bps
|
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