General Motors has announced that it has completed the execution of an unsecured $14.5 billion revolving credit facility.
The new facility consists of:
- $10.5 billion five-year facility
- $4.0 billion three-year facility
The new $14.5 billion facility amends and extends GM’s existing $12.5 billion revolving credit facility. The broadly-syndicated transaction was the result of 44 financial institutions from 13 countries, which GM says underscores the global scope of its operations.
“We believe this larger revolver, along with our $20 billion target cash, will provide appropriate liquidity to enable consistent investment in a downturn to generate strong results,” said Chuck Stevens, GM executive vice president and chief financial officer. “In addition, we will also have the financial flexibility within the revolver for potential opportunities that may emerge to advance our strategic plan”, Stevens added.
GM also affirmed that its capital allocation framework includes targets for cash of $20 billion and available liquidity of $30 to $35 billion, which are necessary “to withstand a severe economic downturn”. The automaker will continue to fund buybacks executed under its common stock share repurchase program with available free-cash-flow.