General Motors has announced that they now have an $11 billion revolving credit facility, which includes a $5.5 billion three-year facility and a $5.5 billion five-year facility. This new credit facility replaces the company’s existing $5 billion credit facility maturing in 2015.
?The new revolver provides a significant source of backup liquidity and financial flexibility, further bolstering our fortress balance sheet,? stated GM SVP and CFO Dan Ammann. ?This level of commitment from the global banking community represents a strong vote of confidence in the financial strength of our company.?
This facility has improved pricing and terms. This also gives GM the ability to borrow in non-U.S. currencies. Other GM companies that can borrow under this facility include GM Financial and GM’s captive finance company.
Around 35 financial institutions from across 14 countries participated in this syndicated transaction. This new facility is expected to be rated investment grade by each major credit rating agencies.
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