General Motors gets upsized $14.5 billion amended, restated revolvers

By Wendy Van Sickle

Columbus, Ohio, June 2 – General Motors Co. amended and restated its two existing revolving credit facilities to increase aggregate borrowing capacity to $14.5 billion on May 26, according to an 8-K filing with the Securities and Exchange Commission.

The facilities amend and restate the $12.5 billion revolvers the company entered into in October 2014. The restated facilities consist of a three-year, $4 billion facility and a five-year, $10.5 billion facility.

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.

The $4 billion revolver includes a borrowing sub-limit of $1 billion for subsidiary General Motors Financial Co., Inc., a letter-of-credit sub-facility of $1 billion and a Brazilian real sub-facility of $300 million.

The $10.5 billion facility includes a General Motors Financial borrowing sub-limit of $3 billion, a letter-of-credit sub-limit of up to $500 million and a Brazilian real sub-facility of $200 million.

The revolvers may be increased up to a total of $18 billion, subject to compliance with some covenants.

The applicable margin is based on ratings, but the rates were not disclosed in the SEC filing.

If GM fails to maintain an investment-grade corporate rating from at least two credit rating agencies it will be required to provide guarantees from certain 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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