General Motors said Monday that it is suspending its quarterly dividend and stock buybacks to preserve cash during the coronavirus pandemic.
JEFF KOWALSKY | AFP | Getty Images
General Motors is taking additional steps to shore up its balance sheet as the coronavirus keeps plants shuttered and auto sales depressed.
The automaker on Thursday announced the pricing of three series of senior unsecured notes for a total of $4 billion as well as plans to establish a new credit line.
The actions include $1 billion of 5.40% notes due in 2023, $2 billion of 6.125% notes due in 2025 and $1 billion of 6.80% notes due in 2027. The proceeds, according to GM, will be used for “general corporate purposes.”
Following the expected settling of the offering Tuesday, GM expects to establish a new 364-Day revolving credit agreement that will provide available borrowing capacity of about $2 billion. GM, in a release, noted it “received commitments from lenders in excess of this amount.”
GM had available…