UAW VEBA Offers Warrants to Purchase Common Stock of GM

Aug. 7, 2013
General Motors Co. announced that the UAW Retiree Medical Benefits Trust (UAW VEBA) has started a secondary public offering of up to 45,454,545 warrants to purchase GM common stock.

General Motors Co. announced that the UAW Retiree Medical Benefits Trust (UAW VEBA) has started a secondary public offering of up to 45,454,545 warrants to purchase GM common stock.

 The UAW VEBA is offering to sell all of the warrants that it holds and will receive all of the net proceeds from the offering. GM will not receive any proceeds from the offering.

Each warrant represents the right to purchase one share of GM’s common stock at an exercise price of $42.31 per share, subject to certain anti-dilution adjustments. The warrants expire Dec. 31, 2015.

A modified Dutch auction is expected to be used to price the offering. Deutsche Bank Securities Inc. is the sole book-running manager and auction agent for the offering, and has specified that the auction will commence at 8 a.m. EDT on Aug. 6, 2013, and will close at 6:30 p.m. EDT on that same day.

During the auction period, potential bidders will be able to place bids at any price in increments of $0.05 at or above the minimum bid price of $3.50 per warrant, up to the maximum bid price of $7.50 per warrant. The minimum size for any bid is 100 warrants.

The auction procedures and terms of the warrants are described in the preliminary prospectus supplement filed today with the Securities and Exchange Commission.