GM announced today that it has secured an $11 billion revolving credit facility from 35 financial institutions in 14 countries - more than doubling the automaker's previous line of credit.
"The new revolver provides a significant source of backup liquidity and financial flexibility, further bolstering our fortress balance sheet," said Dan Ammann, GM senior vice president and chief financial officer. "This level of commitment from the global banking community represents a strong vote of confidence in the financial strength of our company."
JP Morgan Chase Bank will act as the administrative agent and Citibank will be the syndication agent for the credit line, which consists of a $5.5 billion three-year facility and a $5.5 billion five-year facility.
The deal offers improved pricing and terms in addition to the ability to borrow in currencies other than U.S. dollars. GM Financial, GM's captive finance company, will also be able to borrow as part of the facility.
With around $31.6 billion available in its coffers, GM isn't expected to utilize the line immediately. However, the new credit will likely help the automaker earn investment grade credit status from ratings agencies.