General Motors has redeemed all 156.1m outstanding shares of its Series A Preferred Stock from the UAW Retiree Medical Benefits Trust (UAW VEBA) and Canada Gen Investment for an aggregate liquidation amount of US$3.9bn, including accumulated dividends.
The shares had a liquidation preference of $25 per share and accrued cumulative dividends at a rate equal to 9% annually.
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In association with the redemption of the shares, a reduction in net income attributable to common stockholders of approximately $800m will be recorded in the fourth quarter of 2014, which will be treated as a special item.
Mike Chiswell
