July 01, 2007

General Motors announced on May 24 the pricing of a major bond offering pursuant to which GM will issue $1.3 billion of Series D convertible debentures.  The debentures will mature on June 1, 2009, and are convertible into GM common stock under certain specified circumstances.  The offering also involves GM entering into, concurrently with the pricing of the debentures, capped call transactions with certain underwriters as option counterparties.  GM also announced that it granted the underwriters an over-allotment option to purchase up to $195 million aggregate principal amount of additional notes, which option was exercised.  The transaction closed on May 31, 2007.

In connection with the securities offering, GM announced that it received a commitment for a supplemental revolving credit facility in an aggregate amount of approximately $4.1 billion. The company anticipates that the facility will be secured by GM’s common equity ownership of GMAC LLC and will mature 364 days after the definitive agreement is signed. The credit line could be drawn upon for general corporate purposes including working capital needs.

The Jenner & Block team that represented GM in this securities transaction included Partners Joseph P. Gromacki, Donald E. Batterson, William L. Tolbert, Tobias L. Knapp, Farhad K. Patel and Associates Jeffrey R. Shuman and Claire Noakes.