#USA #Senior Notes #Detroit #General Motors #Ultium Cells

General Motors Launches Senior Unsecured Notes

Introduction
On May 5, 2025, General Motors (GM) made a significant announcement regarding the launch of an offering of senior unsecured fixed-rate notes. This strategic move marks another step in GM’s financial planning as it looks to strengthen its corporate structure and enhance its financial flexibility.

Details of the Offering
GM intends to utilize the net proceeds from the sale of these notes for various corporate purposes. A key aspect of the funding will involve refinancing part of the $1.25 billion in outstanding senior notes bearing a 6.125% interest rate, which are due on October 1, 2025. This maneuver is aimed at reducing debt costs and optimizing the company’s financial leverage.

Additionally, a portion of the proceeds will be dedicated to a five-year term loan agreement with Ultium Cells LLC, a joint venture established between General Motors and LG Energy Solution. This loan, worth $1.8 billion, is intended to facilitate the prepayment of loans taken by Ultium Cells under the U.S. Department of Energy's Advanced Technology Vehicles Manufacturing program. This move is crucial for GM as it prepares to navigate the evolving landscape of electric vehicles and sustainable automotive technology.

Registration with the SEC
As part of the regulatory requirements, GM filed a registration statement with the Securities and Exchange Commission (SEC) which includes a prospectus and a preliminary prospectus supplement for this offering. Potential investors are encouraged to review these documents to gain a comprehensive understanding of GM's financial positioning and the specifics of the offering. These documents are readily accessible for free on the SEC's EDGAR platform at sec.gov.

Furthermore, interested parties can also obtain copies of the preliminary prospectus supplement directly from joint book-running managers such as Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, and Wells Fargo Securities, LLC.

Cautionary Notes
The announcement includes a warning regarding forward-looking statements. These statements encompass GM's plans and expectations but are not guarantees of future performance or results. Actual outcomes could differ significantly from what is projected due to various factors, including market conditions and operational challenges.

About General Motors
General Motors is actively steering towards a future characterized by advanced automotive technology, which focuses on enhanced safety, reduced emissions, and vehicle intelligence. The company maintains a diverse portfolio with its brands such as Buick, Cadillac, Chevrolet, and GMC, offering a range of vehicles from traditional gasoline engines to electric models.

As GM transitions towards an all-electric future, it remains committed to adopting innovative technologies that align with changing consumer demands and environmental policies.

Conclusion
In conclusion, General Motors' latest offering of senior unsecured notes reflects its strategic approach to financing and operational optimization. With a strong focus on its joint ventures, particularly in electric vehicle technology, GM is positioning itself at the forefront of the automotive industry amidst an evolving landscape driven by sustainability and innovation.

For more information on this offering and to explore investment opportunities, stakeholders should consult the SEC filings and other publicly available resources. GM's commitment to its financial health and innovation reflects its aim to drive the future of transportation and set the stage for continued growth in this competitive market.