Taxpayers Receive Additional $1.8 Billion in Proceeds from GM IPO

That's nice. Too bad there's no word on when we'll see the rest of it.

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Taxpayers Receive Additional $1.8 Billion in Proceeds from GM IPO

December 2, 2010
TG-992

Taxpayers Receive Additional $1.8 Billion in Proceeds from GM IPO

Exercise of Over-allotment Option Brings Total Taxpayer
Proceeds from GM IPO to $13.5 Billion

IPO Reduced Treasury's Common Stock Stake in GM
by Nearly Half from 60.8 Percent to 33.3 Percent

WASHINGTON – The U.S. Department of the Treasury announced that it today received $1.8 billion in additional net proceeds from General Motors' (GM) initial public offering (IPO), bringing overall net proceeds for taxpayers from the GM IPO to $13.5 billion.

On November 23, Treasury received $11.7 billion in net proceeds from the sale of 358,546,795 shares of common stock in GM's IPO. The underwriters in the offering had a 30-day option to purchase up to 53,782,019 additional shares of common stock from Treasury at the same price to cover over-allotments. The underwriters exercised this over-allotment option in full on November 26, and Treasury today received $1.8 billion in net proceeds from the sale of those additional shares.

"General Motors' IPO is a testament to that company's turnaround and the significant progress we have made continuing to exit our investments and recover taxpayer dollars," said Tim Massad, Acting Assistant Secretary for Financial Stability.

The exercise of the over-allotment option increased the overall amount of GM common stock that Treasury sold in the GM IPO to 412,328,814 shares. In total, the GM IPO reduced Treasury's ownership of GM's outstanding common stock by nearly half from 60.8 percent to 33.3 percent.

U.S. Department of Treasury Participation in the GM IPO
	Shares of Common Stock Sold	Net Proceeds ($ billions)
Initial Sale	358,546,795	$11.7
Over-Allotment	53,782,019	$1.8
Total	412,328,814	$13.5

Treasury has invested a total of $49.5 billion in General Motors. In October, Treasury announced that it accepted an offer by GM to repurchase $2.1 billion of preferred stock – a transaction that is expected to occur in mid-December 2010. With this repurchase and the IPO, taxpayers will have received a total of $23.1 billion from GM through repayments, interest, and dividends since the company emerged from bankruptcy in July 2009. Following the IPO and the preferred stock repurchase, Treasury's remaining stake in GM will consist of 500,065,254 shares of common stock.

Treasury Investment in GM	($ billions)		Return from GM	($ billions)
Pre-January 2009	13.4		Net IPO Proceeds	13.5
Post-January 2009	36.1		Debt Repayment	6.7
			Proposed Preferred Stock Repurchase	2.1
			Interest & Dividends	0.8
Total	$ 49.5		Total	$ 23.1

The proceeds from the GM IPO bring the total amount of TARP funds that have been returned to taxpayers to nearly $254 billion.

TARP Funds Returned to Taxpayers	($ billions)
Repayments Prior to GM IPO	204.3
Profits from Dividends, Interest, Warrant Sales, and Other Income	31.0
Cancelled Commitments (Asset Guarantee Program)	5.0
GM IPO	13.5
Total	253.8

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