General Motors Co. (GM:US), the largest U.S. automaker, reported a new $11 billion revolving credit line consisting of a $5.5 billion three-year facility and a $5.5 billion five-year facility.
The new credit line replaces a $5 billion credit facility maturing in 2015, according to a statement on GM’s website. The expanded credit line “offers improved pricing and terms, and the ability to borrow in currencies other than U.S. dollars,” according to the statement. GM Financial, its captive finance company, will also be able to borrow under the facility.
The larger credit line gives Detroit-based GM borrowing capacity similar to Ford Motor Co. (F:US), which has $9.3 billion in revolving credit facilities. GM said 35 financial institutions from 14 countries participated in the syndicated transaction.
“The new revolver provides a significant source of backup liquidity and financial flexibility, further bolstering our fortress balance sheet,” Chief Financial Officer Dan Ammann said in the statement. The new credit line “represents a strong vote of confidence in the financial strength of our company,” he said.
GM fell 0.4 percent to $25.69 at 9:45 a.m. New York time.
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