- The automaker on Thursday announced the pricing of three series of senior unsecured notes for a total of $4 billion
- Following the settling of the offering, GM expects to enter into a new 364-Day revolving credit agreement of about $2 billion.
- GM had available liquidity of $33.4 billion to end the first quarter.
General Motors is taking additional steps to shore up its balance sheet as the coronavirus keeps plants shuttered and auto sales depressed.
The automaker on Thursday announced the pricing of three series of senior unsecured notes for a total of $4 billion as well as plans to establish a new credit line.
The actions include $1 billion of 5.40% notes due in 2023, $2 billion of 6.125% notes due in 2025 and $1 billion of 6.80% notes due in 2027. The proceeds, according to GM, will be used for "general corporate purposes."
Following the expected settling of the offering Tuesday, GM expects to establish a new 364-Day revolving credit agreement that will provide available borrowing capacity of about $2 billion. GM, in a release, noted it "received commitments from lenders in excess of this amount."
GM had available liquidity of $33.4 billion to end the first quarter. That includes cash, cash equivalents, marketable debt securities and funds available under credit facilities for its automotive operations.
Shares of GM closed Thursday up 2.5% to $22.44. The stock is down 38.7% in 2020.
Preliminary documents for the bond offering, which was managed by Deutsche Bank Securities, were filed with the SEC on Thursday, a day after the automaker reported a first quarter profit of $294 million.
The offering follows several other actions the automaker has taken to save cash and bolster its balance sheet.
GM last week suspended its quarterly dividend and share repurchase program. It also extended $3.6 billion under its three-year revolving credit agreement to April 2022.
In March, GM drew down $16 billion from its revolving credit facilities to strengthen its cash positions. It also disclosed last month that it signed a 364-day revolving credit agreement of $1.95 billion for exclusive use by GM Financial, the company's auto lending arm.