General Motors gets new credit lines totaling $11B

Written By Unknown on Senin, 05 November 2012 | 23.16

DETROIT — General Motors says it has received $11 billion in credit lines from 35 financial institutions in 14 countries.

The lines of credit include a $5.5 billion, three-year credit facility and another $5.5 billion line for five years.

They replace GM's existing $5 billion credit line that was to expire in 2015.

Chief Financial Officer Dan Ammann said in a statement Monday that GM will use the credit as a source of backup liquidity. The company said last week that it ended the third quarter with $31.6 billion in cash.

GM says the new lines have more favorable terms than the old one, and will allow GM to borrow in different currencies.

GM expects the new lines to get investment grade ratings from the major ratings agencies.

Shares of GM rose 12 cents to $25.91 in morning trading Monday.

© Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


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