General Motors announces senior notes offering

DETROIT - General Motors Co. (NYSE:GM) has launched a new offering of senior unsecured fixed rate notes, the company revealed today. The automotive giant, currently valued at $43.69 billion, is looking to refinance part of its existing debt and support its joint venture with LG Energy Solution. According to InvestingPro data, GM maintains a healthy financial position with a "GOOD" overall health score, despite carrying total debt of $134.16 billion.

The proceeds from the note sale will be used for general corporate purposes. Specifically, GM plans to refinance $1.25 billion of its 6.125% senior notes due October 1, 2025, and to allocate funds towards a $1.8 billion five-year term loan to Ultium Cells LLC. This loan is intended to enable Ultium Cells LLC to fully prepay its obligations under the U.S. Department of Energy’s Advanced Technology Vehicles Manufacturing program. The company’s strong financial position is reflected in its impressive free cash flow yield of 30% and current ratio of 1.21, as reported by InvestingPro.

In connection with the offering, GM has filed a registration statement with the Securities and Exchange Commission (SEC), which includes a prospectus and a preliminary prospectus supplement. Prospective investors are encouraged to read these documents for a more complete understanding of the offering and GM’s financials.

The notes are being offered through Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, and Wells Fargo Securities, LLC, which are acting as joint book-running managers for the offering. These documents are accessible to the public through the SEC’s EDGAR system or directly from the joint book-running managers.

The press release emphasized that this announcement does not constitute an offer to sell or a solicitation of an offer to buy the securities, and that any such offer will be made exclusively through a prospectus supplement and related registration statement.

General Motors, with its portfolio of Buick, Cadillac, Chevrolet, and GMC brands, continues to focus on advancing technology to create safer, smarter, and lower emission vehicles. The company, which generated $188.45 billion in revenue over the last twelve months and trades at an attractive P/E ratio of 6.51, is emphasizing its transition to an all-electric future, offering a wide range of electric vehicles (EVs) alongside its traditional gasoline-powered lineup. For detailed analysis and additional insights about GM’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.

The information for this article is based on a press release statement from General Motors.

In other recent news, General Motors (GM) reported strong financial results for the first quarter of 2025, surpassing analysts’ expectations with an adjusted earnings per share (EPS) of $2.78 and revenue of $44.02 billion. This performance exceeded the anticipated EPS of $2.61 and revenue of $43.26 billion. Mizuho Securities recently adjusted its price target for GM shares, lowering it to $53.00 from $55.00, while maintaining an Outperform rating, due to an expected $5 billion impact from tariffs on GM’s 2025 profit forecast. UBS also revised its price target for GM, reducing it to $50.00 from $51.00, and maintained a Neutral rating.

Additionally, General Motors announced a reduction in shifts at its Oshawa Assembly plant in Canada due to decreased demand and trade-related challenges, affecting approximately 700 employees. The company plans to ramp up production at its Fort Wayne, Indiana plant. Despite these challenges, GM reported a 90% year-over-year increase in electric vehicle (EV) sales and maintained strong North American margins. The company updated its 2025 EBIT adjusted guidance to $10-12.5 billion and expects an EPS of $8.25-$10.

GM continues to focus on mitigating the impact of tariffs and maintaining strong profitability, while also investing in EV technology to improve profitability and expand its Super Cruise-equipped fleet.

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