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General Motors Financial files to offer up to $6B of notes

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General Motors Financial files to offer up to $6B of notes

General Motors FinancialCo. Inc. on March 31 filed an automatic shelf registration statementrelated to an offering of up to $6 billion of variable denomination floating ratedemand notes on a continuous basis.

The notes have no stated maturity and are issuable in any amountand are subject to redemption by GM Financial at any time. The notes will bear interestat a floating rate per annum to be determined at the direction of GM Financial.Interest payable on the notes accrues daily and will be credited to the notes onthe last business day of each calendar month and, unless holders elect automaticmonthly interest redemption, will be reinvested in additional notes. The total maximumoutstanding investment for any one investor will not exceed $75 million at any time.

GM Financial intends to use the net proceeds from the sale ofthe notes for general corporate purposes.

The notes are unsecured and unsubordinated debt obligations ofGM Financial ranking equally with all of its other unsecured and unsubordinatedobligations. At Dec. 31, 2015, GM Financial had $23.7 billion of unsecured and unsubordinateddebt. The notes are also structurally subordinated to the indebtedness and otherobligations of the company's subsidiaries with respect to the assets of such entities.As of Dec. 31, 2015, the subsidiaries had approximately $40.7 billion of secureddebt, unsecured debt and other liabilities, payment upon approximately $3.6 billionof which was guaranteed by GM Financial.

The notes are governed by an indenture, dated March 31, betweenthe company and U.S. Bank NA as trustee. The Bank of New York Mellon is the agentbank for the notes. Georgeson Securities Corp. is the broker/dealer.