GM Spends $3.9 Billion to Redeem Preferred Stock
DETROIT - General Motors Co. says it has completed the planned $3.9 billion purchase of 156.1 million shares of preferred stock, reported MLive.
The Detroit-based automaker sold cheaper debt to pay for the purchase.
GM spokesman Tom Henderson said Wednesday that the deal improves the company's cost structure.GM has now redeemed all Series A preferred stock from the UAW Retiree Medical Benefits Trust and Canada Gen Investment Corp.
The trust provides health benefits to retired autoworkers and the investment corporation manages the Canadian government's investment in GM.
The trust got the shares after GM emerged from bankruptcy to help pay the company's retiree health care costs. GM bought back some preferred stock last year.
GM will take an $800 million charge in the fourth quarter for buying back the preferred stock.
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