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GM Preparing To Finalize $10 Billion Credit Extension

General Motors is reportedly in talks with 10 senior lenders, led by JP Morgan (yay), to extend its credit line by at least $8 billion and as much as $10 billion in hopes to fortify its liquidity and refinance existing debt.

According to sources who whispered to Reuters, the plan is to be split between a $5 billion, five-year revolving line of credit and a $5 billion, three-year revolver. However, the final amounts have yet to be determined as discussions between the lenders and GM are said to be ongoing.

Amongst the senior lenders, GM is asking for commitments of $600 million apiece, which are expected to be finalized by the end of the week. Additionally, a second tier of commitments of $350 million will be offered to lenders during a second round of syndication to take place in the next three weeks.

 

Former staff.

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