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GM Will Sell $2 Billion in Notes to Bolster Pension Fund
General Motors Co. says it will issue $2 billion in 20- and 30-year notes to bolster the value of assets that cover its obligation to some 360,000 hourly workers in the U.S.
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General Motors Co. says it will issue $2 billion in 20- and 30-year notes to bolster the value of assets that cover its obligation to some 360,000 hourly workers in the U.S.
The company reported in a regulatory filing that its U.S. pension obligation at the end of 2015 totaled $71.5 billion and was underfunded by $10.4 billion.
Issuing the senior unsecured notes will enable the company to make a discretionary contribution to the plan. GM tells Bloomberg News it expected a return of more than 6% on the plan’s assets last year but earned only 1%.
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