GM ended Q1 with $33.4 billion in automotive liquidity. It wants more for GD V2.0.
In the latest defensive move as the COVID-19 Pandemic is leading global economies into Great Depression V2.0**, General Motors (NYSE: GM) announced today it has launched an offering of senior unsecured fixed rate notes. GM intends to use the net proceeds from the sale of the notes for general corporate purposes. Translation: the cash will be needed as profits continue to drop. (COVID Effects: GM Q1 Earnings Drop -89% to $0.17 a Share)
“We expect the New 364-Day Revolving Facility to be unsecured and to provide available borrowing capacity of approximately $2 billion in U.S. Dollars only, and we have received commitments from lenders in excess of this amount. We expect the New 364-Day Revolving Facility will be generally consistent with the terms of our existing revolving credit facilities,” GM said.
Late today GM subsequently said: the pricing of three series of senior unsecured notes totallledof $4.0 billion. These notes include $1.0 billion of 5.40 percent notes due in 2023, $2.0 billion of 6.125 percent notes due in 2025 and $1.0 billion of 6.80 percent notes due in 2027. The offering is expected to settle on Tuesday, May 12, 2020. In addition, following the closing of the notes offering, GM expects to enter into a new 364-Day Revolving Credit Agreement, subject to certain closing conditions. We expect the New 364-Day Revolving Facility to be unsecured and to provide available borrowing capacity of approximately 2 billion in U.S. dollars, and we have received commitments from lenders in excess of this amount. Continue reading →
General Motors today announced an initiative inviting U.S. dealers to participate in a program using the Centers for Disease Control and Prevention guidelines in the operations of their businesses. Why dealers have not done so already is a mystery to AutoInformed now that even the Republican White House is infested with COVID-19.
Finally, Census Bureau Survey on Businesses
A slow, fumbling start to address COVID means a slow, fumbling recovery.
The first results from the new U.S. Census Bureau Small Business Pulse Survey (https://www.census.gov/data/experimental-data-products/small-business-pulse-survey.html) released today show a large negative effect from COVID-19 for the majority (51.4%) of respondents; and an expectation that it will take more than six months for their businesses to return to normal.
The survey, conducted by email, is intended to provide weekly data on the impact of the COVID-19 plague on the nation’s businesses. Results are displayed as data visualizations. The Census Bureau defines small businesses as single business locations with one to 499 employees and at least $1,000 in annual revenue.
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