Title: General Motors Recent $2 Billion Senior Notes Debt Offering Strengthens Capital Allocation Strategy
On May 5, 2025, General Motors Company (GM) entered into a significant Underwriting Agreement to issue \(2 billion in senior notes, enhancing its capital structure and financial flexibility. This move is pivotal as GM strategically balances investing in sustainable growth, managing its debt profile, and maintaining shareholder value. The notes, comprising \)750 million of 5.350% Senior Notes due 2028, \(750 million of 5.625% Senior Notes due 2030, and \)500 million of 6.250% Senior Notes due 2035, were successfully closed on May 7, 2025.
According to the latest FY 2024 financial data, GM holds \(90.3 billion in long-term debt within total liabilities of approximately \)214.2 billion and total assets of \(279.8 billion, reflecting a healthy leverage position. The company generated \)12.78 billion in operating income for FY 2024, underscoring robust operational performance.
The freshly issued notes come with covenants limiting the company’s ability to incur further indebtedness secured by principal domestic manufacturing properties and affect certain merger and asset conveyance activities. This disciplined approach to debt management aligns with GM’s commitment to preserving an investment-grade balance sheet.
GM intends to deploy the net proceeds primarily towards general corporate purposes, including refinancing \(1.25 billion of senior notes maturing in October 2025, and funding a \)1.8 billion five-year term loan for Ultium Cells LLC, its battery joint venture with LG Energy Solution. The loan preempts loans received under the U.S. Department of Energy’s Advanced Technology Vehicles Manufacturing program.
In Q4 2024, GM paid off \(750 million of senior notes ahead of maturity and anticipates managing another \)1.75 billion in maturities later in 2025. Recent commentary from GM’s earnings call highlighted a \(10-\)11 billion capital expenditure forecast for 2025, including investments in battery joint ventures, supporting long-term profitable growth.
This $2 billion debt offering and proactive refinancing strategy not only optimize GM’s capital allocation but also solidify its financial foundation to advance in the competitive automotive and electric vehicle markets.
For a comprehensive understanding, explore these documents: - Underwriting Agreement dated May 5, 2025 - Indentures from 2013, 2022, and 2025 supplemental agreements
To view the official source document, visit the SEC filing here: GM 8-K May 2025
Keywords: General Motors, GM, senior notes, debt offering, capital allocation, refinancing, long-term debt, bond issuance, Ultium Cells, LG Energy Solution, automotive industry, FY 2024 financials, battery joint venture, U.S. Department of Energy.
Tags: GM Debt Offering, Capital Allocation Strategy, Automotive Industry Finance, Battery Joint Ventures, Corporate Refinancing 2025