DETROIT Nov 5 General Motors Co secured
an $11 billion revolving credit facility, more than doubling its
financial cushion and further strengthening the balance sheet of
the largest U.S. automaker.
The added liquidity could be used to finance a number of
GM's strategic goals, which include breaking even in Europe by
mid-decade and a possible purchase of Ally Financial's European
and Latin American auto loan operations.
The new credit facility replaces a $5 billion line the
company secured more than two years ago in the run-up to its
initial public offering in November 2010.
It offers better terms and the ability to borrow in
currencies other than the U.S. dollar, GM said in a statement on
"The new revolver provides a significant source of backup
liquidity and financial flexibility, further bolstering our
fortress balance sheet," Chief Financial Officer Dan Ammann
Thirty-five banks from 14 countries, led by JPMorgan Chase &
Co and Citigroup Inc, participated in the deal.
The deal gives GM a credit facility comparable to those of
other companies close to its size, GM spokesman Dave Roman said.
Ford Motor Co, the No. 2 U.S. automaker, boosted its
credit facility to $9.3 billion earlier this year.
GM's new credit line consists of a $5.5 billion three-year
facility and another $5.5 billion that matures in November 2017.
Its earlier $5 billion facility would have matured in 2015.
Under the terms, GM Financial, GM's in-house finance
company, can borrow.
Earlier this year, GM was seeking a credit facility of as
much as $10 billion, according to people familiar with the
The U.S. government poured $50 billion into GM during the
financial crisis to help the one-time blue chip avoid
liquidation. The U.S. Treasury nearly halved its GM stake during
GM's IPO but still owns 500 million common shares.
One consequence of the government intervention is that
President Barack Obama and Mitt Romney, his Republican Party
challenger in Tuesday's election, have repeatedly thrown GM into
the spotlight, spurring debate about the effect of its 2009