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.
The article GM Secures $11 Billion in New Credit Lines originally appeared on Fool.com.Eric Volkman has no positions in the stocks mentioned above. The Motley Fool owns shares of Ford. Motley Fool newsletter services recommend Ford and General Motors Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.