Factbox: Highlights from GM’s IPO Filing

(BestGrowthStock) – General Motors Co filed a several hundred-page prospectus on Wednesday with the U.S. Securities and Exchange Commission for an initial public offering that will allow the government to reduce its stake in the automaker.

Some highlights of the planned landmark offering follow.

* The Treasury and other stockholders will sell common stock; GM, itself, will issue mandatory convertible junior preferred stock that is ranked below the preferred shares held by the U.S. and Canadian governments and the United Auto Workers union’s retiree healthcare trust.

* GM had cash and marketable securities of $31.5 billion and outstanding debt of $8.2 billion June 30. None of its major debt comes due until 2015 and it has no mandatory pension contributions until 2014.

* A single paragraph addressed GM’s announcement on August 12 that Chairman and Chief Executive Ed Whitacre would be replaced by director Dan Akerson. GM said the company had a new CEO without automotive industry experience and had promoted a number of senior officers from within the company.

* The Treasury will remain a significant shareholder after the IPO and will be able to influence GM executive appointments and compensation, GM’s business strategy, employee and union decisions and debt and equity issuances.

* Under the direction of TARP Special Master Kenneth Feinberg, compensation for its top executives is uncompetitive with other major corporations, GM said in its filing.

* GM needs significant additional funding for its Opel/Vauxhall restructuring that has been funded internally since the German federal government declined loan guarantees and bankruptcy would be an option if the restructuring cannot be completed.

* Following the offering, the U.S. and Canadian governments will no longer have the right to designate nominees for the GM board. Treasury nominated four directors and Canada one director when the board was formed in July 2009.

* At the end of 2009, GM’s U.S. pension plan had a $17.1 billion shortfall and its non-U.S. pension plan had a $10.3 billion shortfall, according to the filing.

(Reporting by Liana B. Baker, Clare Baldwin and Emily Chasan in New York)

Factbox: Highlights from GM’s IPO Filing