Daily News: November 6, 2012

JPMorgan, Citibank Provide $11B Revolver to GM


General Motors Company through a wholly owned, direct subsidiary, General Motors Holdings LLC (GMH), entered into two new secured revolving credit facilities containing aggregate borrowing capacity of $11 billion with JPMorgan Chase Bank as the administrative agent, Citibank as syndication agent, and a syndicate of 35 lenders.

These new facilities replace the existing five-year, $5 billion secured revolving credit facility that the company entered into in October 2010 and maturing in 2015. The new facilities consist of a three-year, $5.5 billion facility and a five-year, $5.5 billion facility. These facilities provide additional liquidity, improved terms, reduced restrictions on restricted payments (as defined in the credit agreements) and increased financing flexibility including the ability to borrow in currencies other than U.S. dollars.

“The new revolver provides a significant source of backup liquidity and financial flexibility, further bolstering our fortress balance sheet,” said Dan Ammann, GM senior vice president and CFO. “This level of commitment from the global banking community represents a strong vote of confidence in the financial strength of our company.”

GM Financial, GM’s captive finance company, will also be able to borrow under the facility.

A total of 35 financial institutions from 14 countries participated in the broadly syndicated transaction, underscoring the global scope of GM’s operations. The new facility is expected to be rated investment grade by each of the major credit rating agencies.

General Motors Co. and its partners produce vehicles in 30 countries.

Previously on abfjournal.com:

RLPC: General Motors Readies $10B Liquidity Facilities, Monday, September 24, 2012