09/06/2024 | Press release | Distributed by Public on 09/06/2024 11:28
Item 8.01 |
Other Events. |
On September 6, 2024, General Motors Financial Company, Inc. (the "Company") closed the public offering of $1,000,000,000 aggregate principal amount of its 4.900% senior notes due 2029 (the "2029 Notes") and $750,000,000 aggregate principal amount of its 5.450% senior notes due 2034 (the "2034 Notes" and, together with the 2029 Notes, the "Notes") pursuant to an underwriting agreement, dated September 3, 2024 (the "Underwriting Agreement"), by and among the Company and BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Lloyds Securities Inc. and RBC Capital Markets, LLC, as representatives of the several underwriters named therein (the "Underwriters"). Pursuant to the Underwriting Agreement, the Company has agreed to indemnify the Underwriters against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the "Securities Act"), or to contribute to payments the Underwriters may be required to make because of any of those liabilities.
The Notes were sold pursuant to a shelf registration statement on Form S-3(File No. 333-268704)(the "Registration Statement"), which was filed with the Securities and Exchange Commission (the "SEC") on December 7, 2022 and became automatically effective. A prospectus supplement, dated September 3, 2024, relating to the Notes and supplementing the prospectus dated December 7, 2022, was filed with the SEC pursuant to Rule 424(b) under the Securities Act.
The Company estimates that the net proceeds of the offering of the Notes were approximately $1.74 billion, after deducting the Underwriters' discounts and the estimated expenses of the offering. The net proceeds from the offering of the Notes will be added to the Company's general funds and will be available for general corporate purposes.
The Notes were issued as series of debt securities pursuant to an indenture, dated October 13, 2015 (as amended or supplemented to the date hereof, the "Base Indenture"), between the Company and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association), as trustee (the "Trustee"), as supplemented by the fifty-sixth supplemental indenture thereto, dated September 6, 2024 (the "Supplemental Indenture" and, together with the Base Indenture, the "Indenture"), between the Company and the Trustee.
The Notes are the Company's unsecured senior obligations. The Notes will rank senior in right of payment to all of the Company's existing and future indebtedness and other obligations that are expressly subordinated in right of payment to the Notes; pari passuin right of payment with all of the Company's existing and future indebtedness that is not so subordinated, including, without limitation, the Company's other senior notes; effectively junior to any of the Company's secured indebtedness and other secured obligations to the extent of the assets securing such indebtedness or other secured obligations; and effectively junior to any liabilities of the Company's subsidiaries.
The 2029 Notes will bear interest at a rate of 4.900% per annum, payable semi-annually in arrears on April 6 and October 6 of each year, commencing on April 6, 2025. Unless earlier redeemed, the 2029 Notes will mature on October 6, 2029.
The 2034 Notes will bear interest at a rate of 5.450% per annum, payable semi-annually in arrears on March 6 and September 6 of each year, commencing on March 6, 2025. Unless earlier redeemed, the 2034 Notes will mature on September 6, 2034.
Interest will accrue on the Notes from September 6, 2024.
Prior to September 6, 2029 (the date that is one month prior to the stated maturity date for the 2029 Notes), in the case of the 2029 Notes, or June 6, 2034 (the date that is three months prior to the stated maturity date for the 2034 Notes) (each such date, a "Par Call Date"), in the case of the 2034 Notes, the Company may redeem the Notes at its option, in whole or in part, at any time and from time to time, at a redemption price equal to the greater of: (i) 100% of the principal amount of the Notes being redeemed; and (ii) (a) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed, discounted to the date of redemption (assuming the applicable series of Notes matured on the applicable Par Call Date) on a semi-annual basis at the applicable U.S. treasury rate plus 20 basis points, in the case of the 2029 Notes, or 25 basis points, in the case of the 2034 Notes, less (b) interest accrued to the date of redemption, plus, in either case, accrued and unpaid interest thereon to the date of redemption.
On or after the applicable Par Call Date, the Company may redeem the applicable series of Notes, in whole or in part, at any time and from time to time, at a redemption price equal to 100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest thereon to, but excluding, the date of redemption.
The Indenture contains covenants, among others, that limit the Company's ability to sell all or substantially all of its or its subsidiaries' assets or merge or consolidate with or into other companies, and that prohibit the Company and certain of its subsidiaries from granting liens to other creditors, unless the Notes are secured on an equal and ratable basis with the obligations so secured.
The Indenture provides for customary events of default, including nonpayment, failure to comply with covenants or other agreements in the Indenture and certain events of bankruptcy or insolvency. If an event of default occurs and continues with respect to a series of Notes, the Trustee or the holders of at least 25% in aggregate principal amount of the outstanding Notes of such series may declare the entire principal amount of all the Notes of such series to be due and payable immediately (except that if such event of default is caused by certain events of bankruptcy or insolvency, the entire principal of the Notes will become due and payable immediately without further action or notice).
The foregoing descriptions are brief summaries of the Underwriting Agreement, the Indenture and the Notes, and do not purport to be complete statements of the parties' rights and obligations thereunder. The foregoing descriptions are qualified in their entirety by reference to the full text of the Underwriting Agreement, the Base Indenture, the Supplemental Indenture and the forms of the Notes, copies of which are attached as Exhibit 1.1, Exhibit 4.1, Exhibit 4.2, Exhibit 4.3, Exhibit 4.4 and Exhibit 4.5, respectively, to this Current Report on Form 8-Kand are incorporated by reference herein.
The legal opinion of Latham & Watkins LLP related to the offering of the Notes pursuant to the Registration Statement is filed as Exhibit 5.1 to this Current Report on Form 8-K.