General Motors has announced pricing of four series of senior unsecured notes totaling $3.0 billion.

Unsecured notes are effectively loans that are "unsecured" by collateral and in turn, carry a higher risk because they're unattached to any corporate assets, it's backed only by a corporation's credit rating and ability to repay.

A company will use an unsecured note offering to generate cash for corporate initiatives over a fixed term, as such they return a much higher interest rate than a secured debt offering.

In GM's case, the majority of the debt offering will be used to fund payments related to pension obligations that were a condition to closing the Opel/Vauxhall sale. The rest will go towards general corporate purposes.

These notes in question include $0.5 billion of floating rate notes due in 2020, $0.75 billion of 4.20 percent notes due in 2027, $1.0 billion of 5.15 percent notes due in 2038, and $0.75 billion of 5.40 percent notes due in 2048.