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General Motors releases details of $12.5 billion of new revolvers
By Angela McDaniels
Tacoma, Wash., Oct. 22 – General Motors Co. released more information about its $12.5 billion revolving credit facility in an 8-K filing with the Securities and Exchange Commission on Wednesday.
As reported on Friday, the revolver amends and extends the company’s existing $11 billion credit facility and consists of a $5 billion three-year facility and a $7.5 billion five-year facility.
The facilities are available to GM and some other wholly owned subsidiaries, including General Motors Financial Co., Inc.
The facilities allow for borrowing in dollars and other currencies.
The three-year facility includes a $2 billion GM Financial borrowing sublimit, a $1.6 billion letter-of-credit sublimit and a $300 million Brazilian real subfacility.
The five-year facility includes a $2 billion GM Financial borrowing sublimit, a $500 million letter-of-credit sublimit and a $200 million Brazilian real borrowing subfacility.
Pricing was not disclosed in the SEC filing.
Subject to compliance with some covenants, the facilities can be upsized.
J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are the global coordinators, joint lead arrangers and joint bookrunners. JPMorgan Chase Bank, NA is the administrative agent. Citibank, NA is the syndication agent.
GM has guaranteed the obligations of subsidiary borrowers under the revolvers. If GM fails to maintain an investment-grade rating from two or more rating agencies, it will have to provide guarantees from some domestic subsidiaries.
Covenants include restrictions on mergers or sales of assets and secured debt borrowings and require the company to maintain at least $4 billion of global liquidity and at least $2 billion of U.S. liquidity.
General Motors is a Detroit-based automaker.
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