General Motors To Repurchase Treasury Preferred Stock: Cumulative Return To Taxpayers Reaches $9.5 Billion

The U.S. Department of the Treasury today announced that it has accepted an offer by General Motors (GM) to repurchase its $2.1 billion of Series A preferred stock issued under the Trouble Asset Relief Program, conditioned on the closing of the proposed initial public offering of GM's common stock.  With this repurchase, taxpayers will have received a total of $9.5 billion from GM through repayments, interest, and dividends, since the company emerged from bankruptcy in July 2009.  Treasury's total funds invested in GM include $13.4 billion under the prior Administration and $36.1 billion under the current Administration.  After this repurchase, Treasury's investment in GM will be limited to 60.8 percent of the company's primary common equity, before giving effect to any sale of its shares in the initial public offering.

Under the agreement, GM will purchase Treasury's 83,898,305 Series A shares at a price per share of $25.50, which is equal to 102 percent of the liquidation preference.  GM will consummate its purchase of Treasury's Series A preferred stock on the first dividend payment date that occurs after the initial public offering.