Summary
General Motors Company (GM) announced on April 16, 2019, the entry into a new $2.0 billion 364-Day Revolving Credit Agreement. This facility, primarily intended for General Motors Financial Company, Inc. (GM Financial), provides additional liquidity and matures on April 14, 2020. The agreement is unsecured and allows for borrowings only in U.S. Dollars. GM has guaranteed the obligations of any subsidiary borrowers under this facility.
Key Highlights
- 1GM entered into a $2.0 billion 364-Day Revolving Credit Agreement, maturing April 14, 2020.
- 2The facility is unsecured and aims to provide additional liquidity.
- 3The credit line is allocated for exclusive use by General Motors Financial Company, Inc.
- 4Borrowings under the facility are restricted to U.S. Dollars.
- 5GM has guaranteed obligations of subsidiary borrowers.
- 6The agreement includes typical covenants such as restrictions on mergers, asset sales, and secured debt, with exceptions.
- 7GM is required to maintain minimum global liquidity of $4.0 billion and U.S. liquidity of $2.0 billion.
Frequently Asked Questions
The primary purpose of this $2.0 billion 364-Day Revolving Credit Agreement is to provide additional liquidity for General Motors Company, with a specific allocation for its subsidiary, General Motors Financial Company, Inc.
The credit facility has a maturity date of April 14, 2020.
No, the facility is unsecured, meaning no specific collateral is pledged for this credit line.
GM must maintain at least $4.0 billion in global liquidity and at least $2.0 billion in U.S. liquidity. The agreement also contains typical covenants restricting mergers, asset sales, and secured debt borrowings, subject to specified exceptions and limitations.