General Motors details new $16.5 billion revolving credit facility

By Sarah Lizee

Olympia, Wash., April 20 – General Motors Co. disclosed details of its new $16.5 billion unsecured revolving credit facility in an 8-K filed with the Securities and Exchange Commission on Friday.

The renewed facility consists of a $10.5 billion five-year facility due April 18, 2023, a $4 billion three-year facility due April 18, 2021 and a new $2 billion 364-day facility due April 17, 2019.

The three-year facility and the five-year facility amend and restate the $14.5 billion revolving credit facilities the company entered into in May 2016.

The three-year facility allows for borrowing in dollars and other currencies and includes a letter-of-credit sub-facility of $1.1 billion. The five-year facility also allows for borrowing in dollars and other currencies, and the 364-day facility allows for borrowing in dollars only.

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

The company allocated the 364-day facility for exclusive use by GM Financial. Total available credit to the automotive segment under the facility remains at $14.5 billion.

If the company fails to maintain an investment-grade corporate rating from at least two credit rating agencies, it will be required 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.

JPMorgan Chase Bank, NA is the administrative agent and Citibank, NA is the syndication agent. Citigroup Global Markets Inc. is the global coordinator and is also a joint lead arranger and bookrunner with JPMorgan.

A total of 47 financial institutions from 15 countries participated in the broadly syndicated transaction.

General Motors is a Detroit-based automaker.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.