With the new outlook, GM will likely raise a good deal more than the $10.95 billion the company stood to drum up at $30 per share. The automaker's stock is expected to price sometime today before public trading begins tomorrow. Hit the jump for the official press release.
[Sources: General Motors, Reuters]
Common Stock Price Range Increased to $32.00 to $33.00
Convertible Preferred Stock Offering Increased by $1 billion
DETROIT, Mich. – General Motors Company today announced it has increased the estimated price range for the offering of 365 million shares of common stock to be sold by certain of its stockholders to $32.00 to $33.00 per share from the previously estimated price range of $26.00 to $29.00 per share.
The company also announced that it has increased the proposed size of its Series B mandatory convertible junior preferred stock offering from $3 billion to $4 billion, consisting of 80 million shares, excluding the amount that the underwriters have the option to purchase to cover over-allotments, if any. The final terms of both offerings will be determined at the time of pricing.
Morgan Stanley and J.P. Morgan (representatives of the underwriters), 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. Copies of the preliminary prospectus relating to the offering may be obtained for free, by visiting the Securities and Exchange Commission (SEC) website at http://www.sec.gov. Alternatively, you may obtain a copy of the preliminary prospectus, by contacting:
* Morgan Stanley & Co. Incorporated, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014, telephone 1-866-718-1649, or by sending an email to firstname.lastname@example.org
* J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone 1-866-803-9204
A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.