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General Motors (NYSE:GM) Financial Company, Inc. (GM Financial) announced the closure of a public offering of senior notes on Friday, totaling $2.25 billion. The offering consisted of three tranches: $500 million of 5.000% notes due 2027, $1 billion of 5.450% notes due 2030, and $750 million of 6.150% notes due 2035.
The notes were sold under an underwriting agreement dated May 27, 2025, with a consortium of banks including BNP Paribas (OTC:BNPQY) Securities Corp., Credit Agricole (OTC:CRARY) Securities (USA) Inc., and others acting as representatives of the underwriters. GM Financial has agreed to indemnify the underwriters against certain liabilities that may arise under the Securities Act of 1933.
The offering was made pursuant to a shelf registration statement filed with the Securities and Exchange Commission (SEC) on December 7, 2022, which became automatically effective. The prospectus supplement relating to the notes was filed on May 27, 2025.
GM Financial estimates the net proceeds from the offering to be approximately $2.2 billion after underwriting discounts and expenses. The company plans to use the net proceeds for general corporate purposes.
The notes, which are unsecured senior obligations of GM Financial, will rank equally with other non-subordinated indebtedness. They will be effectively junior to any secured indebtedness and to liabilities of GM Financial’s subsidiaries.
Interest on the notes will be paid semi-annually, commencing January 15, 2026. The notes are subject to redemption before maturity at GM Financial’s discretion under certain conditions and at specified redemption prices.
The notes were issued pursuant to an indenture dated October 13, 2015, as supplemented by a fifty-ninth supplemental indenture dated May 30, 2025, between GM Financial and Computershare Trust Company, N.A., as trustee.
This financial move comes as part of GM Financial’s broader strategy to manage its debt portfolio and maintain financial flexibility. The information in this article is based on a press release statement.
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