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Newswire

GM euro price talk revised on strong demand

LONDON, June 25 (Reuters) - Price guidance for the euro tranches of General Motors Corp.'s multi-tranche, multi-currency bond deal has been revised due to strong demand, credit market analysts said on Thursday.

GM is now expected to sell a one billion euro ten-year bond at around 340 basis points over mid-swaps, versus the 350-362.5 basis points originally announced, and a 1.5 billion euro 30-year bond at 380 basis points over mid-swaps, against 387.5-400 basis points earlier, the analysts said.

Financing unit General Motors Acceptance Corp. is expected to sell a 1.5 billion euro two-year floating-rate note at Libor plus around 200 basis points, 25 basis points less than originally expected, and a 1.5 billion euro five-year bond at around 300 basis points over mid-swaps, 12.5 basis points less, they said.

Demand for the total deal, which also contains four tranches in dollars and a sterling denominated tranche, was heard to be around $27 billion late on Thursday, market sources said.

Lead managers for the deal were unavailable for comment.