GM Secures $11 Billion in New Credit Lines
General Motors (NYS: GM) has secured a new $11 billion revolving credit facility, the company announced Monday. This consists of a three-year $5.5 billion line and a five-year arrangement in the same amount. The syndicate providing the monies consists of 35 financial institutions spread across 14 countries, the company said in a statement.
The new facilities replace a $5 billion credit line that will mature in 2015.
In its statement, GM quoted CFO Dan Ammann as saying that the "new revolver provides a significant source of backup liquidity and financial flexibility, further bolstering our fortress balance sheet." The firm did not elaborate on what the funds are to be used for.
The level of financial commitment now puts GM past longtime domestic rival Ford (NYS: F) , which currently boasts $9.3 billion in revolving credit.
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