DETROIT (AP) — A health care trust for General Motors Co.'s retired factory workers raised $171 million in a public offering of warrants to purchase the automaker's stock.
The United Auto Workers Retiree Medical Benefits Trust sold 45,454,545 warrants Tuesday for $3.85 each. That raised a total $174.9 million, with net proceeds of $171 million after fees. GM got no proceeds from the offering.
Each warrant represents the right to buy one share of GM's common stock at an exercise price of $42.31 per share. The warrants expire Dec. 31, 2015.
GM's shares closed Tuesday at $35.96, near the top end of their 52-week range of $19.98 to $37.71.
The sale doesn't change GM's ownership structure. The trust still holds 10 percent of the company's shares, and the U.S. Treasury holds 14 percent.