General Motors gets $3 billion three-year revolving credit facility

By Sarah Lizee

Olympia, Wash., Jan. 14 – General Motors Co. entered into a $3 billion three-year revolving credit agreement with JPMorgan Chase Bank, NA as administrative agent on Monday, according to an 8-K filing with the Securities and Exchange Commission.

The revolver is only available to General Motors and only allows for dollar borrowings.

In 18 months, the revolver will be automatically and permanently reduced to $2 billion.

Pricing is Libor plus a margin based on the company’s credit ratings. The margin was not disclosed in the filing.

Consistent with the terms of the company’s other revolvers, if General Motors fails to maintain an investment-grade corporate rating from two or more of Fitch Ratings, Moody’s Investors Service and S&P Global Ratings, it will be required to cause some of its domestic subsidiaries to guarantee its obligations under the facility.

Covenants include restrictions on mergers or sales of assets and secured debt borrowings, subject to exceptions and limitations.

The facility also requires that General Motors maintain at least $4 billion in global liquidity and at least $2 billion in U.S. liquidity.

JPMorgan, Citibank, NA, Bank of America, NA, Barclays Bank plc. Banco Bilbao Vizcaya Argentaria, SA New York Branch, BNP Paribas, Commerzbank AG, New York Branch, Credit Agricole CIB, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Intesa Sanpaolo SpA – New York Branch, Mizuho Bank Ltd., Morgan Stanley Senior Funding, Inc., Natwest Markets plc, National Westminster Bank plc, RBC Capital Markets, Sumitomo Mitsui Banking Corp, Societe Generale, Toronto Dominion Bank, New York Branch, Bank of Nova Scotia and Wells Fargo Bank, NA are joint lead arrangers and joint bookrunners, as well as documentation agents with Industrial and Commercial Bank of China Ltd. New York Branch and Royal Bank of Canada as documentation agents. Citibank is the syndication agent as well as a global coordinator with JPMorgan.

General Motors is a Detroit-based automaker.

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